The SEC has asserted that some cryptocurrencies are securities as part of an insider trading case
In its historic insider trading complaint, the U.S. SEC explicitly stated that Coinbase-listed tokens are “crypto asset securities.” Notably, none of them are in the CoinMarketCap top 50.
SEC Says These Cryptocurrencies Are Securities: See the Full List
The SEC’s list looks the following way: Amp (#88), RLY (#161), POWR (#172), XYO (#272), RGT (#332), LCX (#386), DDX (#600), KROM (#1020). DFX (#3416). Coinbase publicly broke with the SEC by stating that the tokens are not securities.
The exchange described the charges as “an unfortunate distraction” from the appropriate “law enforcement action.” CFTC commissioner Caroline D. Pham claims that the SEC’s allegations could have “broad applications” beyond this case. Coinbase has submitted a petition asking the SEC to propose clear rules for crypto trading.
SEC Chair Gary Gensler once again stated that most cryptocurrencies are unregistered securities, so there would be a “functioning market.” Related Peter Brandt Says Bitcoin Is “Useless Without an Exorbitant Use of Energy” A historic inside trading case This is the first insider trading case from the SEC and the DOJ specific to cryptocurrency securities. Notably, Coinbase is not the subject of the probe. Federal prosecutors charged the exchange’s employee Ishan Wahi with insider trading and two other men (his brother, Nikhil Wahi, and his Indian-American friend, Sameer Ramani).
Coinbase’s former product manager was charged with leaking insider information to the two men. By knowing the time of upcoming listing announcements, they could buy crypto in advance and collect substantial profits. The aforementioned tokens were linked to the trio’s insider trading plot. The Wahi brothers were arrested in Seattle earlier this Thursday.
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