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The U.S. Securities and Exchange Commission’s (SEC) lawsuit against former Coinbase product manager Ishan Wahi could have major implications for the crypto industry, as the agency designates nine
The U.S. Securities and Exchange Commission’s (SEC) lawsuit against former Coinbase product manager Ishan Wahi could have major implications for the crypto industry, as the agency designates nine tokens as “digital securities.” The commissioner explained CFTC Caroline Pham.
Read my description at #SEC v. Wahi, editing by executive & #CFTC authority #crypto #digital assets #DAO pic.twitter.com/xbHvyshx8l
— Caroline D. Pham (@CarolineDPham) 21 July 2022
On July 21, the US Department of Justice announced the arrest of Waha and her brother Nikhil. They are accused of fraud using insider trading. Another defendant in the case is Samir Ramani.
According to the researchers, they used confidential information about upcoming digital asset listings on Coinbase to make profitable trades.
The SEC sued the suspects with similar arguments but emphasized that we are talking about securities fraud.
Thus, the agency classified 9 out of 25 cryptocurrencies that the defendants used in their operations. This list includes Powerledger (POWR), Chromatika (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX and XYO tokens.
According to Pham, the Commission’s actions are an example of “regulation through practice”. He stressed that the SEC does not want to determine whether a particular token belongs to a security class “through a transparent process involving the public and relevant experts.”
“Editorial clarity comes when everything is clear, not when everything is dark. Given the prevailing public interest and unresolved questions about the legal status of various digital assets such as utility tokens and governance tokens DAO“The CFTC must use all available tools to fulfill its mandate of rigorous law enforcement and compliance with the Commodity Exchange Act,” he wrote.
Coinbase, which conducts its own investigation into the incident, also criticized the SEC’s actions. The company stressed that no securities are traded on its platform.
“Assets listed on our platform are not securities. “The SEC allegations only divert the attention of law enforcement,” he said.
Recall that in July 2022, US House of Representatives Tom Emmer said that the SEC interfered with the regulation of the cryptocurrency industry and treated its participants unethically.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
