The SEC has never considered specific tokens as securities, but has taken into account the full set of contracts, expectations, and agreements regarding the sale of assets. This was stated by the Commission in an amended complaint against Binance.
“The SEC regrets any confusion it may have invited” by falsely and repeatedly stating that tokens themselves are securities. This is the remarkable representation in Footnote 6 of @SECGov‘s Amended Complaint against Binance. I hope @s_alderoty is getting some good sleep tonight.… pic.twitter.com/PpbprvkGxh
— paulgrewal.eth (@iampaulgrewal) September 13, 2024
“The SEC ‘regrets any confusion’ it may have caused by repeatedly falsely stating that tokens themselves are securities,” commented Coinbase’s Chief Legal Officer Paul Grewal.
He noted that the agency classified XRP as an investment contract in the very first paragraph of its complaint against Ripple.
Stuart Alderoty, General Counsel of the California crypto company, criticized the SEC’s clarification, comparing the agency’s stance to a “twisted salty pretzel.”
According to him, the Commission acknowledged that a “crypto asset security” is a fabricated term requiring evidence gathering.
Attorney Fred Rispoli disagreed, acknowledging that in this situation, the SEC looks “pretty good.”
Stu I appreciate where you are trying to go but TBH with a cold beer, a college football game on, and some hot mustard and/or cheese sauce, the SEC is actually (finally) looking pretty good.
— Fred Rispoli (@freddyriz) September 13, 2024
Noted industry lawyer Jake Chervinsky supported Grewal, comparing the SEC’s behavior to “extreme gaslighting.” Commenters reminded him that during the process, he supported the agency’s assertion regarding the classification of XRP as a security.
“Nice try to save face. But it shows they still can’t grasp concepts too complex to understand at a glance. Cryptocurrency tokens are mostly ‘crowdfunding without equity.’ A completely new idea,” noted entrepreneur Azure.
Earlier, current SEC Chairman Gary Gensler expressed doubts about the necessity of cryptocurrencies and stated their harm to the economy.