The Digital Chamber of Commerce is trying to end a lawsuit brought by the US Securities and Exchange Commission (SEC) against former user Coinbase (COIN) alleging insider trading.
The group’s founder, Perianne Boring, said that if the SEC is successful, many digital assets could be classified as securities. “We see this as something that affects and will have huge ramifications for the entire digital economy,” Boring said Friday on CoinDesk TV’s “First Mover” of the “friend of the court” (amicus) case of one in the SEC. . The action was taken in the United States District Court in Washington, D.C.
Last year, the United States Department of Justice (DOJ) charged former Coinbase CEO Ishan Wahi with wire fraud for sharing information with his brother, Nikhil Wahi and his friend Sameer Ramani about the list the symptoms. .
The SEC quickly followed suit, indicting the trio for alleged business dealings. According to Boring, the SEC “leaned” on the DOJ case, essentially “hanging on to a third party that had nothing to do with issuing these tokens.”
At a time when crypto companies find themselves in a tussle with regulators, Boring said what the SEC is doing is another example of regulation-by-enforcement and does nothing to define “what kind of asset transactions digital it considers as transactions in securities”.
If the court rules in favor of the SEC, nine of the alleged 25 crypto assets the trio bought and sold could be defined as securities. This could lead to further legal battles for other crypto companies that list the tokens, she said. That’s why his team filed an amicus brief, arguing that the SEC crackdown is a form of “backward regulation.”
Binance, the world’s largest crypto exchange and itself in the crosshairs of US regulators, is among the contributors to the group’s legal package.
Earlier this month, Wahi admitted to being an insider, while his brother Nikhil pleaded guilty to conspiracy to defraud. Wahi’s lawyers, however, have filed a motion to dismiss the SEC’s fraud charges, saying the listed tokens are service contracts, not financial contracts.
The SEC’s Wahi case may be lost, in part because “the DOJ has already charged them,” Boring said. Still, “in one way, shape or form,” the trade union is “trying to downplay the importance of doing business,” he said.
“I want to be clear that anyone who violates the law, just violates the code of ethics, we will enforce the law against those people,” Boring said, adding that the DOJ’s case would have “nothing to do.” and punishment. Wahi and his team faced. Nevertheless, “the decision that accepts the condition of the dry and import any means of the digital values for digital values,” it is exhausting.
He added that the instructions are said by the Sice offer “forms of words and statements that cannot hide and administration”.
Coindesk contacted dry and don’t hear to say printing.
