Major Bitcoin and altcoin exchange Coinbase has criticized the US Securities and Exchange Commission (SEC) for its lack of regulatory clarity and action. He also clarified that 7 altcoins that the SEC labeled as “securities” are not securities. He himself was critical of insider trading. For this, two US regulators blamed the former employee of the exchange. Here are the details…
Coinbase reacted about these altcoin projects
Coinbase said on Thursday it had filed a petition asking the SEC to “start making rules over digital asset securities,” stating that current rules for securities don’t work for digital assets, and the regulator is reluctant to do anything new. Rules for the crypto industry. They argued that this put investors at risk by citing funds in XRP that were lost during the regulator’s court battle with Ripple. According to the exchange, most digital assets today feature securities. Most are designed to evade US securities laws. The exchange used the following statements:
Cryptoassets as securities need an updated rulebook to guide safe and efficient practices. Non-securities cryptoassets need the certainty of staying outside of these rules. Anything else will have the effect of consolidating existing technologies at the expense of innovation and ultimately consumers.
This came the same day the SEC announced that recently charged individuals had “purchased at least 25 cryptoassets, nine of which are securities.” This once again raised numerous questions regarding regulatory (vague) clarity on this issue in the US.
Authorities call for regulatory
The U.S. Commodity Futures Trading Commission (CFTC) said Commissioner Caroline Pham called for regulatory cooperation and that this SEC complaint claims “dozens of digital assets, including those that can be identified as utility tokens and/or certain tokens and DAOs, are securities.” It came with an explanation. Pham used the following statements:
The SEC’s claims could have broad implications beyond this single case, underscoring how critical and urgent it is for regulators to work together.
Specifically, however, the aforementioned SEC announcement was not strictly about securities, but rather about them and the charges that the Department of Justice (DoJ) separately brought against a former Coinbase executive and two others for insider trading. As reported yesterday, the trio allegedly used confidential information about which crypto assets are planned to be listed on the exchange.
The SEC’s announcement stated that the exchange warned its employees not to trade or tip others based on this confidential information. Still, “the long-running insider trading scheme generated more than US$1.1 million in total illicit profits.” As we reported on Kriptokoin.com, the SEC has launched a series of investigations into the activities of multiple crypto exchanges. Businesses are reportedly trying to determine if they have enough security to prevent insider trading.
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