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SEC Asserts Nine Cryptocurrencies Are "Securities"
Summary: The U.S. Securities and Exchange Commission (SEC) used its insider-trading case on Thursday to declare nine digital assets as "securities." The digital tokens in the case are AMP, RLY, DDX, XYO, POWR, RGT, LCX, DFX, and KROM. The SEC regulator filed a 62-page complaint on Thursday, asserting that the nine digital tokens should be ...
The U.S. Securities and Exchange Commission (SEC) used its insider-trading case on Thursday to declare nine digital assets as "securities." The digital tokens in the case are AMP, RLY, DDX, XYO, POWR, RGT, LCX, DFX, and KROM.
The SEC regulator filed a 62-page complaint on Thursday, asserting that the nine digital tokens should be defined as "securities" under the Howey Test (U.S. Supreme Court case for determining if a transaction qualifies as an "investment contract, and therefore is considered a security).
According to the same SEC complaint, a former Coinbase product manager allegedly engaged in insider trading activities by telling his brother which digital assets the exchange would add next.
In a recent statement made on Twitter, Caroline Pham, Commissioner of the Commodity Futures Trading Commission (CFTC), described the action as a "striking example of 'regulation by enforcement.'"
Coinbase said that none of the cryptocurrencies listed on the platform are securities, but according to Attorney Jason Gottlieb (a lawyer with Morrison Cohen LLP), Coinbase is not a party to the action, and therefore it may not be able to challenge
Author: Garrett Meifert
Tags: CFTC,Coinbase,Securities and exchange commission
Link: SEC Asserts Nine Cryptocurrencies Are "Securities" [Copy]
