US Regulator Lists 9 Tokens as Unregistered Securities, More Bad Press for Coinbase
Categories: Crypto News US

USRegulator Lists 9 Tokens as Unregistered Securities, More Bad Press forCoinbase
The case was announced after insider charges were filedagainst a former Coinbase product manager, his brother, and his friend forallegedly trading several crypto assets before they were made available forpublic trading, on multiple occasions.
Were Coinbase CEO Brian Armstrong said onTwitter that the company received information about a potential front earlierthis year and “immediately launched an investigation”.The unregisteredsecurities claim, earlier this year, became the subject of a class-actionlawsuit by Coinbase for selling 79 crypto assets that were allegedlyunregistered securities, and unfortunately for them, another claim seemslikely.
it occurs the case, which originated from the SEC, allegedthat those accused were at the forefront of a public listing of 25 digitalassets, nine of which were described as unlicensed securities.As a result, hemade a profit of approximately US$1.1 million. Specifically, the claimrefers to Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Amp (AMP),Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX, and XYO.
Gurbir Grewal, director of the SEC's Department ofEnforcement, commented that they were less concerned with the label "ratherthan the economic realities of an offering".He added: “In thiscase, those facts confirm that a number of crypto assets were issued, and, asalleged, the defendants engaged in specific insider trading prior to theirlisting on Coinbase. Rest assured, We will continue to ensure equal opportunityfor investors, regardless of the label on the securities involved."
Carolyn Pham, a commissioner with the US Commodity FuturesTrading Commission (CFTC), said the SEC's actions constitute "regulationby enforcement", rather than addressing the question of whethercertain crypto assets are securities or not "a transparent process".through which engages the public to develop appropriate policy with expertinputs”.
As is often alleged, it has become increasingly clear thatregulatory clarity is needed on the question of whether crypto assets areunregistered securities. Securities require substantial disclosure, and arearguably conspicuously absent in the vast majority of crypto projects.