The first cryptocurrency insider trading case charged two Coinbase employees and an ex-product manager.
The SEC alleged Thursday that nine of the 25 tokens traded were securities.
Grewal published a blog post Thursday titled Coinbase doesn't list securities, in which he denied the claims.
Prosecutors accuse them of using Coinbase's platform to sell new tokens before they were announced publicly.
Regulators and cryptocurrencies companies alike have debated whether some cryptocurrencies are securities.
There is a notable Supreme Court case called the Howey Test that deems certain assets as securities.
The token listing framework at Coinbase is known for being more conservative than other exchanges.
FTX and Binance offer over 300 coins, respectively, whereas Coinbase offers just over 200.
Although Coinbase denies hosting unauthorized securities on its platform, the SEC believes it does.
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