Coinbase's Chief Legal Officer criticizes the SEC's ambiguous stance on the FTX plan, stating that investors deserve "better outcomes."

ChainCatcher news, Coinbase Chief Legal Officer Paul Grewal expressed concerns about the lack of a clear plan from the U.S. SEC regarding FTX's repayment to creditors using stablecoins or other cryptocurrencies. Grewal's comments were in response to a document submitted on Friday, in which the SEC reserved its rights concerning the approval of FTX Trading Ltd.'s joint bankruptcy protection plan by the U.S. Bankruptcy Court for the District of Delaware.

On Sunday, Grewal stated on social media platform X: The U.S. SEC did not explicitly state that this conduct is illegal. He referenced the wording used by the securities regulator in a court document, where the SEC wrote: The SEC has not expressed an opinion on this conduct. Under federal securities law, the U.S. Securities and Exchange Commission does not express an opinion on the legality of the transactions outlined in the plan and reserves the right to challenge transactions involving crypto assets.