Coinbase's top legal officer Paul Grewal emphasized that the company believes its platform's "rigorous due diligence process" can keep securities away. To substantiate his point, he also shared a blog post on July 22.
I am pleased to reiterate again and again that we believe that our rigorous due diligence process (the process reviewed by the SEC) excludes securities from our platform. We look forward to touching the SEC.
The update should come amid Bloomberg's SEC investigation into Coinbase, which reportedly allowed Americans to trade digital currencies that were supposed to be registered as securities. Citing three people familiar with the issue, Bloomberg reported that the committee is currently looking at some of the tokens listed on the exchange.
A few days ago, the SEC charged a former Coinbase employee with insider trading for violating the anti-fraud provisions of the securities laws. The commission also asserted that the seven digital currencies listed on the platform are securities.
In a blog post shared again, Grewal has been cooperating with the SEC in its investigation of the seven assets. [However, instead of opening a dialogue with [the asset] on our platform, the SEC went straight into litigation," the blog wrote.
The chief legal officer then gave a problem that he felt the United States needed to address - the lack of a [clear and feasible regulatory framework for digital currency securities."
As can be seen from Coinbase`s asset catalogue, there are more than 200 digital currencies listed on the platform.
