Coinbase and Ripple CLOs Paul Grewal and Stuart Alderoty have once again criticized the US Securities and Exchange Commission (SEC) for its latest actions against Binance. In a scathing post on Thursday, Grewal took aim at the SEC, stating that the regulatory body lacks structure and standardized guidelines for law enforcement.
Grewal, who has been a vocal critic of the SEC’s crackdown on crypto exchanges, pointed out the lack of clarity in the SEC’s enforcement actions. He specifically referenced the SEC’s recent settlement with eToro, an Israeli-based crypto exchange. The SEC announced that eToro had agreed to reduce its cryptocurrency offerings and pay a $1.5 million penalty. Under the new terms, eToro would only offer US investors access to trade Bitcoin, Bitcoin Cash, and Ethereum.
Grewal highlighted the SEC’s inconsistent classification of cryptocurrencies as commodities or securities. He noted that while the SEC deemed Bitcoin and Ethereum as commodities, it failed to provide clear criteria for this classification. This lack of clarity has been a major point of contention in the SEC’s ongoing legal battle with Ripple.
Stuart Alderoty, Ripple’s Chief Legal Officer, also chimed in on the SEC’s actions, calling the regulatory body a “twisted pretzel of contradiction.” He criticized the SEC’s use of the term “crypto asset securities” in its complaint against Binance, pointing out the inconsistency in the regulator’s statements.
The regulatory uncertainty in the US has been a significant issue for the crypto industry, prompting support for Republican candidate Donald Trump. Trump has pledged to address the current regulatory climate, starting with the removal of SEC Chair Gary Gensler.
Overall, the criticism from Coinbase and Ripple CLOs underscores the challenges faced by crypto exchanges in navigating the regulatory landscape. The lack of clarity and consistency from the SEC has created uncertainty for market participants, highlighting the need for clearer guidelines and enforcement practices in the crypto industry.