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Notably, the SEC recently charged Bittrex, alleging that Algo is a security, but Coinbase has not delisted Algo as it did with XRP, raising questions.
Paul Grewal, the Chief Legal Officer at Coinbase, recently spoke on the exchange’s decision to retain trading activities for Algorand (Algo) despite the US SEC characterizing it as a security in the charges brought on Bittrex. The fact that Coinbase delisted XRP for this reason but has not done the same for Algo has raised questions.
In a recent interview on a Crypto Law episode, 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 concerning Coinbase’s approach to reviewing 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 further said: “…XRP was suspended, and then we see a case against Bittrex where the SEC says Algo is also security; and, of course, there isn’t a suspension of that. Do you understand where, as XRP holders, they get frustrated or even angry that they are penalized – not that anyone wants you to de-list or suspend Algo – just, what’s your thought?”
Responding to the inquiry, Grewal disclosed that he understands the XRP community’s frustration regarding the situation. “I understand where folks are coming from, and I also understand where it can feel like there’s a double standard that’s been applied in a variety of circumstances.”
Grewal Calls for Teamwork
Grewal further noted that law and circumstances evolve, citing SEC chairperson Gary Gensler. He emphasized that Coinbase is committed to applying the law and standing up for the rule of law for everyone, which includes XRP holders. According to him, this is why Coinbase filed an amicus brief in Ripple’s favor last November.
“The main point for all of us is that this is a team sport we need to play. We’re up against the most well-resourced adversary on the entire planet, that’s the US government in the form of the SEC,” Grewal stressed.
He identified that the SEC is not above mistakes in interpreting the law. He further noted that he believes there is a political force behind the recent slew of enforcement, and it is imperative that “we all work together and we find our common ground, and we claim our government back for ourselves.”
Recall that, as previously reported by The Crypto Basic, the Chief Legal Officers of Ripple and Coinbase recently held a professional meeting that triggered speculations of a sort of partnered work between both entities.
Despite Grewal’s recent comments on why Coinbase has not delisted Algo as it did with XRP, proponents have noted that they are still in the dark. The XRP community has claimed that the Coinbase CLO avoided giving a direct answer to the question.