Paul Grewal, Coinbase’s chief legal officer (CLO) and former U.S. magistrate court judge, was hosted by attorney John Deaton in the latest CryptoLaw show.
In an interesting conversation with the CLO of the largest U.S.-based crypto exchange, Deaton reacted to Coinbase’s treatment of Algorand (Algo) despite recent claims from the SEC that the crypto asset is a security.
Recall that the Gary Gensler-led securities agency filed a case against Bittrex and its co-founder and former CEO William Shihara on April 17, 2023, asserting that the company is operating an unregistered national securities exchange, broker, and clearing agency. Notably, the SEC classified Algo as a security in the charges.
Regardless, Coinbase is still retaining trading activities for the crypto asset. This has raised questions from the XRP community given that XRP was delisted from the top exchange back in 2021 because of the same claims from the SEC. In December 2020, the securities watchdog sued Ripple, claiming XRP is an unregistered security.
Deaton asked, “XRP was suspended, and then we see a case against Bittrex where the SEC says Algo is also security; and, of course, there isn’t a suspension of that. Do you understand where, as XRP holders, they get frustrated or even angry that they are penalized – not that anyone wants you to de-list or suspend Algo – just, what’s your thought?”
A Conversation with Paul Grewal https://t.co/05cpOeu4fJ
— CryptoLaw (@CryptoLawUS) May 9, 2023
Although Grewal gave no direct answer, the Coinbase CLO noted that he understands how the XRP community feels, citing that law and circumstances can always evolve. “I understand where folks are coming from, and I also understand where it can feel like there’s a double standard that’s been applied in a variety of circumstances,” he said.
Going further, he called on crypto communities to come together and thwart the SEC’s ambition of achieving crypto regulation by enforcement. He said, “The main point for all of us is that this is a team sport we need to play. We’re up against the most well-resourced adversary on the entire planet, that’s the US government in the form of the SEC.” This explains his recent meeting with Ripple’s CLO Stuart Alderoty.
As previously reported, Grewal stated that even if the court concludes that XRP is not a security, Coinbase would still access the asset before relisting.
Follow us on Twitter, Facebook, Telegram, and Google News
