SEC Regrets Confusion Over ‘Crypto Asset Tokens’ — Ripple and Coinbase Respond
Coinbase and Ripple’s legal heads, Paul Grewal and Stuart Alderoty, have voiced their discontent with the U.S. Securities and Exchange Commission (SEC) for its inconsistent classification of tokens as securities. Grewal highlighted Footnote 6 in the SEC’s amended complaint against Binance, where the agency acknowledged creating confusion by labeling tokens as securities. He also noted the SEC’s inconsistent handling of Ethereum transactions. Alderoty shared similar concerns, stating that while Ripple’s case is over, the “fair notice” defense remains for others. They both criticized the SEC for its unclear and contradictory regulatory practices, causing further confusion in the industry.