The post Legal Experts React as SEC Regrets Confusion Over Its Crypto Asset Security Claim appeared on BitcoinEthereumNews.com.

The U.S. SEC expresses regret for any confusion it may have created through the use of its invented term, “crypto asset securities.”  In an interesting development, Coinbase’s Chief Legal Officer (CLO) Paul Grewal called the public’s attention to the SEC’s recent efforts to backtrack on its claim that crypto assets themselves constitute securities.  SEC Regrets Confusion Over Its Crypto Asset Security Definition  Per Grewal, the SEC made this move in footnote six of the amended complaint in the Binance lawsuit. Footnote 6 in SEC Ammended Complaint Notably, the SEC said it regrets any confusion it may have invited by repeatedly using the term “crypto asset securities.”  According to the SEC, the term does not imply that the crypto assets are inherently securities themselves. Instead, it uses the term as a shorthand for the expectations, set of contracts, and understanding surrounding the sale and distribution of the token.  Interestingly, the SEC vowed never to use the term in the proposed amended complaint (PAC) to avoid further confusion.  SEC Backtracks  Last year, the SEC labeled ten crypto assets, including Solana (SOL) and Cardano (ADA), as securities in its lawsuit against Binance. A year later, the regulator requested that it wished to amend its complaint, eliminating the need for the court to issue a verdict characterizing the tokens as securities. The SEC officially filed the amended motion yesterday, expressing regrets for the confusion its use of the term crypto asset securities has created in the lawsuit.  Notably, Binance is required to file a response to the SEC’s motion for amendment by October 11, 2024. The world’s largest exchange is expected to either consent or oppose the SEC’s request.  Legal Experts React  Expectedly, top legal experts reacted to the SEC’s backtracking and admission of its wrong usage of crypto asset securities.  Grewal, who called…

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Filed under: News - @ September 13, 2024 3:20 pm