ChainCatcher reported that Paul Grewal, chief legal officer of Coinbase, expressed concern that the U.S. SEC did not clarify FTX's plan to repay creditors with stablecoins or other cryptocurrencies. Grewal's comments were in response to a document filed on Friday, in which the SEC reserved its rights to approve FTX Trading Ltd.'s joint bankruptcy protection plan in the U.S. Bankruptcy Court for the District of Delaware.
Grewal said on social media platform X on Sunday: The SEC did not outright state that this behavior was illegal. He referred to the language used by the securities regulator in a court filing, in which the SEC wrote: The SEC did not express an opinion on this behavior. Under federal securities laws, the SEC does not express an opinion on the legality of the transactions outlined in the plan and reserves the right to question transactions involving crypto assets.
