Coinbase's Chief Legal Officer urges the Chairman of the SEC to stop misclassifying cryptocurrencies as securities

ChainCatcher news, according to Bitcoin.com, Coinbase Chief Legal Officer Paul Grewal recently called out U.S. SEC Chairman Gary Gensler on social media, urging him to stop misclassifying crypto tokens as securities.

This request was in response to Gensler's remarks, in which he emphasized: "According to the U.S. Supreme Court's interpretation, many of these tokens are legally securities. We follow this law." In response, Grewal stated: Please stop misleading the market—tokens are not securities. Even though your requests are ignored, your own lawyers have already acknowledged this in court.

Gensler recently emphasized that while cryptocurrencies make up only a small portion of the overall financial market, their non-compliance with securities laws disproportionately fuels fraud and deception. He also highlighted the necessity for proper disclosures in the crypto space, particularly regarding tokens classified as securities, and argued that investors are not receiving adequate information disclosures.