Paul Grewal, Coinbase’s CLO has expressed his dissatisfaction with the U.S. Securities and Exchange Commission (SEC) for opposing their collaboration with Celsius, a defunct cryptocurrency lending platform.
Coinbase is proud to engage with Celsius to distribute crypto back to its customers. I wonder, why would the SEC object to a trusted US public company taking on this role? We look forward to addressing this with the bankruptcy court and undertaking our important role to make… https://t.co/5i1aJDiPXp
— paulgrewal.eth (@iampaulgrewal) September 25, 2023
SEC’s Witch Hunt Against Coinbase and Celsius Intensifies
The SEC has been scrutinizing Coinbase’s proposed partnership with Celsius, which is currently undergoing bankruptcy proceedings, to determine whether it violates securities laws.
Grewal’s comments were made in response to a letter from the SEC that questioned the legality of the proposed partnership. The letter also requested that Coinbase provide additional information about its relationship with Celsius and how it plans to comply with securities regulations.
Celsius recently proposed to engage Coinbase as a distribution agent for international customers and sought the court’s approval. In response to this proposal, Coinbase’s CLO Paul Grewal, expressed his pride in collaborating with Celsius to distribute crypto back to its customers.
The SEC has stated that certain documents filed as part of the plan supplement were “inconsistent and raised concerns.” Moreover, the SEC has raised concerns about these agreements, stating that they extend beyond the scope of a distribution agent’s services. As they include provisions for brokerage services and master trading services, which are central to the SEC’s ongoing legal action against Coinbase.
Furthermore, Chief Legal Officer, Paul Grewal expressed his anticipation of resolving this matter with the bankruptcy court and questioned the SEC’s rationale behind opposing a reputable U.S. public company from undertaking this role.
In response to Grewal’s post, several users on X (formerly Twitter) criticized the SEC’s objection. One user suggested that Coinbase’s involvement in the Celsius bankruptcy case portrays Coinbase as a trustworthy and reliable entity, which contradicts the SEC’s intentions. Another user speculated that the SEC objects because their objective is to undermine everyday U.S. investors rather than safeguard their interests.