Caroline Pham, one of the five Commissioners of the US Securities and Exchange Commission (CFTC), is concerned about the potential impact of a lawsuit filed by the US Securities and Exchange Commission (SEC) against former Coinbase product managers. Was announced.
Fam in a statement on Thursday Said The SEC’s complaints against former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi, and associate Sameer Ramani are cases, considering that they label nine tokens as “cryptographic asset securities” under the jurisdiction of the regulatory body. Beyond “may have a wide range of impacts”.Complaints Alleged Wahis and Ramani Engaged in insider trading Use sensitive information about the tokens Ishan lists on the exchange, obtained from Coinbase, for pre-purchase.
Specifically, the SEC is Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX, and XYO — I referred to 9. The trio reportedly used it to earn $ 1.1 million in securities out of 25 different cryptocurrencies. Rather than addressing the question of whether a particular crypto asset is a securities, Fam said the SEC’s actions are “transparent, involving the public to incorporate expert opinion and formulate appropriate policies. Throughout the process, he said it constitutes an example of “enforcement regulation.”
“Regulatory clarity comes from going outdoors, not in the dark,” Fam said. “Given the highest priority public interest and open questions regarding the legal status of various digital assets, such as certain utility tokens and DAO-related tokens, the CFTC has a statutory obligation to proactively enforce the law. You must use all available means to fulfill. We support the Commodity Exchange Act. “
Read my statement above #SEC v. Wah, enforcement regulation & #CFTC authority #crypto #digitalassets #DAO pic.twitter.com/xbHvyshx8l
— Caroline D. Fam (@CarolineDPham) July 21, 2022
Thursday update to April blog post from Coinbase in response to the incident Alluded to With similar concerns, the SEC’s accusations are called “unfortunate distractions.”Also the Federal Law Office in Southern New York Submission Indicted in parallel with the SEC proceedings, but labeled the relevant tokens (Tribe (TRIBE), Alchemix (ALCX), Gala (GALA), Ethereum Name Service (ENS), POWR, XYO, etc.) as securities. did not.
“DOJ did not claim securities fraud. The assets listed on our platform are not securities,” the company said.
Gurbir Grewal, chief operating officer of the SEC, argued that the proceedings against Wahis and Ramani were based on the “economic reality of the offering” and that some of the crypto assets used were securities. Regulators said they were seeking permanent injunction relief, injustice, and civil punishment.
Related: CFTC labels 34 cryptocurrencies and forex companies as unregistered foreign companies
The CFTC and SEC often label US digital asset regulations as either commodities or securities based on their respective institutions and claim overlapping jurisdictions. In June, Senators Cynthia Lummis and Kirsten Gillibrand submitted a bill. Aimed to provide regulatory clarity For space, we give the CFTC “clear authority over the applicable digital asset spot markets.”But Lumis Said in an interview on Tuesday The law “is likely to be postponed until next year,” he said.
