In its historic insider trading complaint, the U.S. Securities and Exchange Commission explicitly declared that the tokens listed on Coinbase are actually “crypto asset securities”.
It is noteworthy that none of them are in the top 50 of CoinMarketCap. The SEC list is as follows: Amp (#88), RLY (#161), POWR (#172), XYO (#272), RGT (#332), LCX (#386), DDX (#600), KROM ( #1020). DFX (#3416).
Coinbase has publicly broken with the SEC by specifically stating that tokens are not securities. The exchange called the accusations “an unfortunate distraction” from the relevant “law enforcement actions”.
CFTC Commissioner Caroline D. Pham argues that the SEC’s allegations could have “wide application.” apart from this one case.
Coinbase has filed a petition asking the SEC to propose clear rules for cryptocurrency trading.
Earlier today, SEC Chairman Gary Gensler reiterated that most cryptocurrencies are unregistered securities, so there will be a “functioning market.”
Historical case of domestic trade
This is the first case of insider trading from the SEC and the Department of Justice regarding cryptocurrency securities. Notably, Coinbase is not the subject of an investigation.
Exchange employee Ishan Wahi was charged by federal prosecutors with insider trading along with two other men (his brother Nikhil Wahi and his Indian-American friend Sameer Ramani).
A former Coinbase product manager has been accused of leaking insider information to the two men. Knowing the timing of the upcoming listing announcements, they were able to buy the cryptocurrency in advance and make a significant profit.
All of the aforementioned tokens have been linked to insider trading of the trinity.
The Wahi brothers were arrested in Seattle earlier this Thursday.
Credit : u.today