On September 13, Paul Grewal, Chief Legal Officer of Coinbase, posted on social media, stating: “In footnote 6 of its Amended Complaint against Binance, the US Securities and Exchange Commission (SEC) stated, ‘As the Court noted, the SEC reiterates that when it uses the term ‘crypto asset securities’, it is not suggesting that the crypto assets themselves are securities; rather, as the SEC has consistently maintained since its first crypto asset Howey case, the term is shorthand, and the SEC regrets any confusion that may be caused.’

As the Court explained, the crypto assets are the subject of investment contracts. Defendants appear to argue that even though ten crypto assets were offered and sold as securities during their ICOs, they don’t forever remain securities. The SEC makes no such claim. The SEC's allegations regarding the ten crypto assets involved in the secondary market are that their promotional materials and economic realities have not materially changed, and therefore these crypto assets continue to be offered and sold as investment contracts under the Howey test.’

The SEC has consistently maintained that the tokens themselves are securities, as evidenced by their long history of enforcement actions and regulatory oversight. Why mislead the court?”