Coinbase Chief Legal Officer Responds to Insider Trading Case: No Securities Fraud Involved

Coinbase's chief legal officer Paul Grewal responded to the insider trading event by stating that he disagreed completely with the SEC's allegations of securities fraud, noting that Coinbase has a rigorous process to analyze and review each digital asset before making it available on their exchange, and that the SEC has reviewed that process, and that most assets actually do not end up being vetted. To be explicit, the majority of assets that they review are not ultimately listed on Coinbase. Moreover, the fact that the SEC did not communicate with Coinbase before filing suit highlights the problem that the US doesn’t have a clear or workable regulatory framework for digital asset securities. And SEC didn't craft tailored rules in an inclusive and transparent way.