After carefully reading the transcript of the SEC-Binance court hearing, American attorney Paul Grewal, who serves as the Chief Executive Officer of the cryptocurrency exchange Coinbase against which the SEC has filed suit, has criticised it. Grewal has cast doubt on the Securities and Change Fee’s (SEC) ability to “reserve” and “get past” the movement in accordance with Court Rule 8.
The regulators asked the US Federal Court to freeze the property of the change as a transfer following the SEC’s collection of allegations against the renowned cryptocurrency platform Binance in order to ensure customer safety. However, at the recent court hearing Grewal mentioned, the judge suggested a settlement between the firm and the change, allowing Binance to continue its activities.
On June 26, a Coinbase attorney tweeted a thread in which he questioned the regulator’s motivations for making an incorrect claim about Rule 8:
The SEC’s response was incorrect when the court asked for clarity on the deemed securities and the securities exchanged by Binance during the hearing. Additionally, the brokers were unable to provide any evidence to support their assertions of the misappropriation of customer monies.
According to the courtroom hearing transcript, the fee asserted that the SEC is at the “pleading stage” of requesting rights and asked to dismiss any potential action without having any impact on the firm. The claim is that:
Grewal highlighted the SEC’s misinterpretation of Rule 8 by sharing the conversation between Choose Amy Berman Jackson and the SEC lawyer. The attorney questioned, “Since when does Rule 8 (or 11) enable any party, excluding the government, to “reserve” identifying the specifics of its claims in order to “get through” a motion to dismiss and into discovery?”
