According to BlockBeats, on September 13, Paul Grewal, chief legal officer of Coinbase, posted on social media that “the U.S. Securities and Exchange Commission (SEC) stated in footnote No. 6 of the amended complaint filed against Binance, ‘As the court pointed out, the SEC reiterates that when it uses the term crypto asset securities, it does not mean that the crypto assets themselves are securities; on the contrary, as the SEC has maintained since its first crypto asset Howey case, the term is a shorthand and the SEC regrets any confusion that may be caused.

As the court explained, cryptoassets are the subject matter of investment contracts. Defendants appear to argue that even if the ten cryptoassets were offered and sold as securities during the ICO, they were not always securities. The SEC does not make that argument. The SEC’s allegation with respect to the ten cryptoassets involved in the secondary market is that, under the Howey standard, there was no material change in their promotion and economic reality, and therefore the cryptoassets were still offered and sold as investment contracts.

The SEC has consistently maintained that tokens are securities, as is clear from their long record of enforcement activity. Why mislead the court?”