Coinbase Chief Legal Officer Paul Grewal spoke with attorney John Deaton, host of the Twitter-based podcast CryptoLaw, about the exchange’s decision to continue offering Algorand (ALGO).
The US Securities and Exchange Commission (SEC) previously classified Algorand as a security in its cost against the Bittrex crypto exchange.
Notably, Coinbase has delisted XRP in 2021 based on regulatory oversight. But it has yet to do the same with ALGO, even though the cryptocurrency has a similar problem.
Paul Grewal explains Coinbase position on Algorand
In his interviewJohn Deaton discussed the confusion among the XRP community regarding Coinbase’s approach to making and reviewing listing decisions.
Paul Grewal stated that secondary asset sales do not make them securities. However, Deaton believes that the same argument regarding secondary sales applies to XRP tokens.
According to Deaton, XRP’s suspension from trading on Coinbase was due to the argument that the token is a security under US law.
However, Coinbase still offers ALGO to traders, frustrating XRP holders who feel disadvantaged. In response, Grewal reiterated Coinbase’s commitment to upholding the rule of law equally for all. He sympathized with the plight of XRP holders believing that a double standard applies to different situations.
Furthermore, Grewal states that laws and circumstances have changed and referred to those of Coinbase amici short will back Ripple in November 2022. He believes crypto exchanges and projects “must work together to withstand a solid adversary,” according to the US SEC.
According to Grewal, the SEC is not above mistakes in interpreting the law, and the agency’s recent enforcement is politically motivated.
Teamwork Necessary Forward
These comments come after a meeting Paul Grewal and General Counsel of Ripple, Stuart Alderoty. John Deaton noted that the meeting showed two great General Counsels leading the front line in the fight to improve crypto regulation in the United States.
Two large GCs lead the front lines into battle. I tip my 🧢 Gentlemen. https://t.co/YYVBf5wl5h
— John E Deaton (@JohnEDeaton1) May 3, 2023
John Deaton had recommended it in a tweet March 2023 that crypto companies facing SEC enforcement action should share ideas. He believes they can develop coordinated strategies to defend themselves against the commission and its “excesses.”
Also lawyer Bill Morgan responded to the meeting between Coinbase and Ripple’s top legal officials. He believes that nothing is “better than teamwork against a common enemy”. interesting, Ripple And Coin base faced regulatory pressure from the SEC on several occasions.
The second charged ripple for offering XRP tokens as unregistered securities in 2020. While the case continues, the commission filed a Wells Notice to Coinbase in February 2023.
Meanwhile, some XRP enthusiasts have called on Coinbase to offer XRP again. According to XRPcryptowolfshould Coinbase relist XRP if they “want Ripple’s help to beat the SEC”.
Featured image from Coinbase and chart from Tradingview