Gary

Read

/send

<div class="protos">
 <div>
  <div>
   <div>
    <p>A recent ruling in the Western District Court of Washington has given the biggest indication yet from a federal judge that crypto traded on secondary markets like Coinbase should be classed as securities under the remit of the Securities and Exchange Commission (SEC).</p>
    <p>The case in question saw former <a rel="noopener noreferrer nofollow" title="Coinbase" href="https://thebittimes.com/tag/coinbase.html">Coinbase</a> employee Ishan Wahi, his brother, and their friend Sameer Ramani accused of running a $1.5 million insider trading operation via the platform. Wahi and his brother have previously settled with the <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>, however, Ramani is still on the run.</p>
    <p>On Friday, Judge Tana Lin officially ruled that, <strong>despite the trades made by the trio happening on Coinbase, they should still be classed as securities</strong> and therefore fall well within the jurisdiction of the SEC and its famously anti-crypto chair Gary Gensler.</p>
    <p>Needless to say, such a ruling could have huge repercussions, not just for this case but for the entire crypto industry.</p>
    <p>“Each issuer continued to make such representation regarding the profitability of their tokens even as the tokens were traded on secondary markets. Thus, under Howey, all of the crypto assets that Ramani purchased and traded were investment contracts,” wrote Judge Lin.</p>
    <figure class="wp-block-embed is-type-wp-embed is-provider-protos wp-block-embed-protos">
     <div class="wp-block-embed__wrapper">
      <blockquote class="wp-embedded-content" data-secret="7Vs38nbPPi">
       Coinbase insider trading case ends with guilty plea
      </blockquote><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" style="position: absolute; clip: rect(1px, 1px, 1px, 1px);" title="“Coinbase insider trading case ends with guilty plea” — Protos" src="https://protos.com/coinbase-insider-trading-case-ends-with-guilty-plea/embed/#?secret=NGHd7aBq9w#?secret=7Vs38nbPPi" data-secret="7Vs38nbPPi" width="500" height="282" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe>
     </div>
    </figure>
    <p><em>Read more: Gary Gensler hasn’t always believed everything but bitcoin is a <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urity</em></p>
    <p>Lin’s decision to classify <a rel="noopener noreferrer nofollow" title="Crypto" href="https://thebittimes.com/tag/crypto.html">Crypto</a> traded on <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>ondary markets as <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urities is totally in step with Gensler, who believes that “everything other than Bitcoin” should be classed as a <a rel="noopener noreferrer nofollow" title="SEC" href="https://thebittimes.com/tag/sec.html">SEC</a>urity.&nbsp;</p>
    <p>Friday’s ruling <strong>may also reportedly impact a separate case involving Kraken</strong> as Lin’s ruling will be incorporated as case law. In addition, multiple cases involving securities are being heard by appellate courts which means there’s a chance this ongoing debate on crypto securities could reach the Supreme Court.</p>
    <p><em>Got a tip? Send us an email or ProtonMail. For more informed news, follow us on&nbsp;X,&nbsp;</em><em>Instagram</em><em>,&nbsp;</em><em>Bluesky</em><em>, and&nbsp;</em><em>Google News</em><em>, or subscribe to our&nbsp;</em><em>YouTube</em><em>&nbsp;channel.</em></p>
   </div>
  </div>
 </div>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/judge-rules-that-crypto-trades-made-on-exchanges-are-fair-game-for-sec-tbt81558.html">https://thebittimes.com/judge-rules-that-crypto-trades-made-on-exchanges-are-fair-game-for-sec-tbt81558.html</a></p>

Judge rules that crypto trades made on exchanges are fair game for SEC

TheBitTimes

Other articles published on Mar 4, 2024

Bitcoin traders raise leverage 300%: Will BTC price finally reach $70k this week?

Bitdeer Revolutionizes Bitcoin Mining with SEAL01 Chip

Alibaba’s Price Cuts Ignite Battle Among Chinese Cloud Companies

Can JasmyCoin (JASMY) Hit a ‘Multibillion’ Dollar Market Cap? Experts Remain Bullish But…

Top 5 Promising Altcoins for Diversified Portfolio

Why Growing Bitcoin Demand Could Ignite a 6,300% Bull Rally in 15 Years

Join our free newsletter for daily crypto updates!