Crypto News: The world’s two biggest crypto exchanges, Binance and Coinbase are facing legal complications from the U.S. Securities and Exchange Commission (SEC) for allegedly breaching operation rules. As the legal tussle continues, Coinbase Legal Chief pointed out the commission’s confusing approach to token categorization in the Binance case.
Also Read: XRP Lawyer Settles Debate On XRP As Security
SEC Refuses Take Position
Paul Grewal, Chief Legal Officer for Coinbase mentioned that while reviewing a transcript of Binance’s hearing before Judge Jackson, he spotted the US SEC’s puzzling legal strategy.
As per the transcription, the court asked the SEC about the defendants trading tokens that are not considered as securities. So, are the rest of the tokens security or not?
SEC Counsel dodged the question stating that it is reserving its right as they are still at the pleading stage. It is required to get into the discovery phase where a full assessment can be done around the categorisation.
However, the court again enquired about the tokens which are not mentioned in the lawsuit. It asked where the commission place them, and do they fall in the commodities category. Meanwhile, the SEC stated that “they are not taking any position’ over them and try to get past.
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