Coy Garrison: Digital Assets Are Not Securities, Urges Withdrawal of Gensler-Era Lawsuits

Washington, D.C. – Coy Garrison, former counsel at the U.S. Securities and Exchange Commission (SEC), has made a bold statement, declaring that digital assets are not securities. In a recent interview, Garrison emphasized the need for the withdrawal of lawsuits initiated during the tenure of former SEC Chairman Gary Gensler.

Garrison, now a partner at Steptoe & Johnson LLP, argued that the SEC’s broad classification of digital assets as securities has created unnecessary regulatory burdens. “Sweeping statements that nearly all digital assets are securities, or are not securities, ignore the complexity of the analysis and distract from finding a workable solution to the numerous legal and regulatory issues involved,” Garrison stated.

The former SEC counsel highlighted the importance of clear and sensible regulation for the digital asset industry. He pointed out that the current regulatory framework fails to protect investors and stifles innovation1. “The status quo harms investors, responsible industry participants, and the U.S. economy,” Garrison added.

🚨BREAKING: Coy Garrison – Former SEC Counsel says: “Digital assets are not securities, and Gensler-Era lawsuits should be withdrawn!” #XRP pic.twitter.com/Nr7UprO1Jk

— JackTheRippler ©️ (@RippleXrpie) February 12, 2025

Garrison’s comments come at a time when the SEC is seeking to pause its high-profile lawsuit against cryptocurrency exchange Binance, signaling a potential shift in the agency’s approach under new leadership. The move has been welcomed by many in the crypto industry, who have long criticized the SEC’s inconsistent regulatory stance.

As the debate over the classification of digital assets continues, Garrison’s call for the withdrawal of Gensler-era lawsuits underscores the need for a more nuanced and balanced regulatory approach. “We need clear rules of the road that provide certainty and foster innovation,” Garrison concluded.

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