The U.S. Securities and Exchange Commission (SEC) recently scrutinized Bittrex, a cryptocurrency exchange. The SEC claimed that Algorand (ALGO) is a security. Therefore, he blamed Bittrex for the sale of ALGO. However, the fact that Coinbase did not delist ALGO, as it did for XRP, raised questions. Here are the details…
Coinbase, which delisted Ripple (XRP), did not delist ALGO
Coinbase’s Chief Legal Officer, Paul Grewal, spoke recently about the exchange’s decision to continue trading for Algorand (ALGO), despite the US SEC’s designation of ALGO as a security in its accusations against Bittrex. Coinbase’s delisting of XRP with the same claim, but not doing the same for ALGO, raised questions. In a recent Crypto Law interview, these questions were posed to Grewal by attorney John Deaton.
A Conversation with Paul Grewal https://t.co/05cpOeu4fJ
— CryptoLaw (@CryptoLawUS) May 9, 2023
In the interview, Deaton highlighted the confusion among XRP proponents regarding Coinbase’s approach to reviewing its listing decisions. Grewal had confirmed that secondary sales of assets do not constitute securities. In response, Deaton noted that Grewal’s argument regarding secondary sales also applies to XRP. Deaton used the following statements:
…XRP trading suspended. Then we see the SEC filing a lawsuit against Bittrex alleging that Algo is also a security. Of course, ALGO trading has not been suspended. Do you know that XRP holders feel ‘punished’ and disappointed with the Coinbase delist? No one is asking you to delist or suspend Algo, either. Just curious about your opinion.
Responding to the question, Grewal explained that he understands the frustration of the XRP community with the situation. “I understand people’s problem. I also understand that they felt like there was a double standard applied in various situations.”
Grewal calls for teamwork
Grewal also cited SEC Chairman Gary Gensler, noting that laws and conditions are evolving. He stressed that Coinbase is committed to enforcing the law and upholding the rule of law for all. According to him, this is why Coinbase presented an “amicus summary” in favor of Ripple last November. Grewal said, “The main point for all of us is that this is a team game that we have to play. We are facing the best resourced enemy on the planet, which is the SEC/US government,” he added.
Grewal noted that the SEC does not shy away from making mistakes when interpreting the law. Grewal also stated that he believes there is a political force behind the recent sanctions. He stated that for this, it is necessary to “work together and find a common ground”. Before cryptocoin.comAs reported by Ripple and Coinbase’s Chief Legal Officers recently held a professional meeting that sparked speculations of some sort of collaboration between both organizations.
Despite Grewal’s recent comments on why Coinbase did not delist Algo as it did with XRP, supporters still have a question mark. The XRP community claimed that the Coinbase CLO avoided giving a direct answer to the question.
