Caroline Pham, one of the five commissioners of the U.S. Commodity Futures Trading Commission, or CFTC, expressed concern about the possible repercussions of a case brought by the Securities and Exchange Commission (SEC) against a former Coinbase product manager.

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In a statement Thursday fam said The SEC complaint against former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi and partner Sameer Ramani “could have wide implications” outside of the case given that nine tokens were labeled as “crypto asset securities” subject to regulatory purview. A complaint supposed Wahi and Ramani engaged in insider trading using confidential information obtained by Ishan from Coinbase regarding which tokens would be listed on the exchange for purchases in advance.

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In particular, the SEC mentioned Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX and XYO – 9. of 25 different cryptocurrencies that the trio allegedly used to make a profit of $1.1 million – as securities. Pham said the SEC’s actions are an example of “enforcement regulation” rather than addressing the issue of certain crypto assets as securities “through a transparent process that involves the public in the development of appropriate policy with the participation of experts.”

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“The clarity of regulation comes from the fact that you are outdoors and not in the dark,” Pham said. “Given the prevailing public interest and open questions about the legal status of various digital assets, such as certain utility tokens and DAO-related tokens, the CFTC should use all available means to fulfill its statutory mandate to vigorously enforce the law and comply with the Commodity Exchange Act. “.

Thursday, update to the April Coinbase blog post in response to this case. hinted with similar concerns, calling the SEC allegations “an unfortunate distraction”. The U.S. Attorney’s Office for the Southern District of New York also filed an indictment in parallel with the SEC case, but did not label any of the tokens involved, including Tribe (TRIBE), Alchemix (ALCX), Gala (GALA), Ethereum Name Service (ENS), POWR and XYO, as securities.

“The Department of Justice has not brought charges of securities fraud,” the company said. “No assets listed on our platform are securities.”

SEC Director of Enforcement Gurbir Grewal said his case against Wahi and Ramani was based on the “economic realities of the supply”, alleging that some of the crypto assets used were securities. The regulator said it was seeking a permanent injunction, extradition and civil sanctions.

The CFTC labels 34 crypto and forex firms as unregistered foreign entities.

The CFTC and SEC often claim overlapping jurisdictions when it comes to regulating digital assets in the United States, designating them as either commodities or securities based on their respective agencies. In June, Senators Cynthia Lummis and Kirsten Gillibrand introduced a bill aimed at bringing regulatory clarity to the space, giving the CFTC “clear authority over applicable digital asset spot markets.” However, Lummis said in an interview on Tuesday that the passage of the law “is likely to be delayed until next year.”