Coinbase Joins Crypto Firms to Ask SEC: Update Rules for Digital Assets!
Coinbase Joins Ripple in Challenging SEC Rules
• Coinbase has joined Ripple, Paxos and other crypto firms in filing an amicus brief in the SEC v. Wahi case, challenging the SEC’s use of outdated securities rules on new technology.
• The US Securities and Exchange Commission had filed civil and criminal charges against two individuals for engaging in insider trading related to Coinbase.
• The Blockchain Association and the Chamber of Digital Commerce also filed a separate amicus brief asking the court to dismiss the lawsuit on grounds that old securities rules do not apply to digital assets.
Coinbase Files Amicus Brief
Coinbase has joined Ripple, Paxos and other crypto firms in filing an amicus brief in the SEC v. Wahi case, challenging the SEC’s use of outdated securities rules on new technology. The company argues that instead of bringing forward a misguided securities lawsuit, the US Securities and Exchange Commission should focus its efforts on setting proper rules and guidance related to securities.
SEC Charges Two Individuals With Insider Trading
The US Securities and Exchange Commission had filed civil and criminal charges against Ishan Wahi, a former manager at Coinbase Global, his brother Nikhil Whai, as well as their friend Sameer Ramani for engaging in insider trading related to Coinbase’s planned support for various assets. It was reported that Ishan had first-hand knowledge of these plans before they were publicly announced on Twitter.
Coinbase Opposes Securities Fraud Charges
Despite admitting that Ishan had pleaded guilty to insider trading and wire fraud charges, Coinbase strongly objects to the securities fraud charges against him as it claims that assets listed on its platform are not securities henceforth rendering them invalid. The company is also petitioning the Agency to make rules on digital asset securities as existing ones do not apply to digital assets.
Blockchain Association Files Separate Amicus Brief
In February 2021, The Blockchain Association and Chamber of Digital Commerce also filed a separate amicus brief asking the court to dismiss this lawsuit claiming existing security laws are inadequate for digital assets such as cryptocurrencies which operate differently from traditional financial instruments like stocks or bonds covered by existing rule sets.
