Coinbase Chief Legal Officer Expresses Dissatisfaction with SEC’s Ambiguous Treatment of FTX’s Compensation Plan

Odaily News Paul Grewal, chief legal officer at Coinbase, expressed concern that the U.S. Securities and Exchange Commission (SEC) has not clarified the plans of cryptocurrency exchange FTX 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 in approving a joint bankruptcy protection plan for FTX Trading Ltd. in the U.S. Bankruptcy Court for the District of Delaware. "The SEC did not outright state that this conduct was illegal," Grewal said on X Platform on September 2. 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 conduct: Under the 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."