{"id":476490,"date":"2022-07-22T00:20:00","date_gmt":"2022-07-21T21:20:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-listing-9-tokens-as-securities-in-insider-trading-case-could-have-broad-implications-cftc\/"},"modified":"2022-07-22T00:20:00","modified_gmt":"2022-07-21T21:20:00","slug":"sec-listing-9-tokens-as-securities-in-insider-trading-case-could-have-broad-implications-cftc","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-listing-9-tokens-as-securities-in-insider-trading-case-could-have-broad-implications-cftc\/","title":{"rendered":"# SEC listing 9 tokens as securities in insider trading case &#8216;could have broad implications&#8217; \u2014 CFTC"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a39d5557d137\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a39d5557d137\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-listing-9-tokens-as-securities-in-insider-trading-case-could-have-broad-implications-cftc\/#%E2%80%9D_SEC_listing_9_tokens_as_securities_in_insider_trading_case_%E2%80%98could_have_broad_implications_%E2%80%94_CFTC_%E2%80%9C\" >&#8221; SEC listing 9 tokens as securities in insider trading case &#8216;could have broad implications&#8217; \u2014 CFTC &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SEC_listing_9_tokens_as_securities_in_insider_trading_case_%E2%80%98could_have_broad_implications_%E2%80%94_CFTC_%E2%80%9C\"><\/span>&#8221; SEC listing 9 tokens as securities in insider trading case &#8216;could have broad implications&#8217; \u2014 CFTC &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYTRiMTAxNGYtZGMxYy00ZWIxLWIxYWEtMjIzMmU1YmIyNWViLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>Caroline Pham, one of five commissioners with the United States Commodity Futures Trading Commission, or CFTC, has expressed concerns about the possible implications of a case the Securities and Exchange Commission, or SEC, brought against a former product manager at Coinbase.<\/p>\n<p>In a Thursday statement, Pham <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/phamstatement072122\">said<\/a> the SEC complaint against former Coinbase product manager Ishan Wahi, his brother Nikhil Wahi and an associate Sameer Ramani \u201ccould have broad implications\u201d beyond the case, given its labeling nine tokens as \u201ccrypto asset securities\u201d falling under regulatory body\u2019s purview. The complaint <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/litigation\/complaints\/2022\/comp-pr2022-127.pdf\">alleged<\/a> the Wahis and Ramani engaged in insider trading by using confidential information Ishan obtained from Coinbase in regard to which tokens would be listed on the exchange to make purchases in advance.<\/p>\n<p>Specifically, the SEC referred to Powerledger (POWR), Kromatika (KROM), DFX Finance (DFX), Amp (AMP), Rally (RLY), Rari Governance Token (RGT), DerivaDAO (DDX), LCX, and XYO \u2014 9 of the 25 different cryptocurrencies the trio allegedly used to reap $1.1 million in gains \u2014 as securities. Pham said the SEC\u2019s actions constituted an example of \u201cregulation by enforcement\u201d rather than addressing the question of certain crypto assets as securities \u201cthrough a transparent process that engages the public to develop <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriate policy with expert input.\u201d<\/p>\n<p>\u201cRegulatory clarity comes from being out in the open, not in the dark,\u201d said Pham. \u201c\u200b\u200bGiven the overriding public interest and the open questions on the legal statuses of various digital assets, such as certain utility tokens and DAO-related tokens, the CFTC should use all means available to fulfill its statutory mandate to vigorously enforce the law and uphold the Commodity Exchange Act.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Read my statement on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/SEC?src=hash&amp;ref_src=twsrc%5Etfw\">#SEC<\/a> v. Wahi, regulation by enforcement &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CFTC?src=hash&amp;ref_src=twsrc%5Etfw\">#CFTC<\/a> authority <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#crypto<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/digitalassets?src=hash&amp;ref_src=twsrc%5Etfw\">#digitalassets<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/DAO?src=hash&amp;ref_src=twsrc%5Etfw\">#DAO<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/xbHvyshx8l\">pic.twitter.com\/xbHvyshx8l<\/a><\/p>\n<p>\u2014 Caroline D. Pham (@CarolineDPham) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CarolineDPham\/status\/1550159347984044033?ref_src=twsrc%5Etfw\">July 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nA Thursday update to an April blog post from Coinbase in response to the case <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.coinbase.com\/an-update-on-our-asset-listing-processes-e74421da21cc\">hinted<\/a> at similar concerns by referring to the SEC charges as an \u201cunfortunate distraction.\u201d The U.S. Attorney\u2019s Office for the Southern District of New York also filed an indictment in parallel with the SEC\u2019s case, but did not <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.justice.gov\/usao-sdny\/press-release\/file\/1521186\/download\">label<\/a> any of the tokens involved \u2014 including Tribe (TRIBE), Alchemix (ALCX), Gala (GALA), Ethereum Name Service (ENS), POWR, and XYO \u2014 as securities.<\/p>\n<p>&#8220;The DOJ did not charge securities fraud,\u201d said the company. \u201cNo assets listed on our platform are securities.\u201d<\/p>\n<p>SEC enforcement director Gurbir Grewal said its case against the Wahis and Ramani was based on the \u201ceconomic realities of an offering,\u201d alleging some of the crypto assets used were securities. The regulator said it sought permanent injunctive relief, disgorgement and civil penalties.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>CFTC labels 34 crypto and forex firms as unregistered foreign entities<\/em><\/strong><\/p>\n<p>The CFTC and SEC often claim overlapping jurisdictions when it comes to regulating digital assets in the United States, labeling them as either commodities or securities based on their respective agencies. In June, Senators Cynthia Lummis and Kirsten Gillibrand introduced a bill aimed at providing regulatory clarity fort the space, giving the CFTC \u201cclear authority over applicable digital asset spot markets.\u201d However, Lummis said in a Tuesday interview that the legislation was \u201cmore likely to be deferred until next year.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-listing-9-tokens-as-securities-in-insider-trading-case-could-have-broad-implications-cftc\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; SEC listing 9 tokens as securities in insider trading case &#8216;could have broad implications&#8217; \u2014 CFTC &#8220; Caroline Pham, one of five commissioners with the United States Commodity Futures Trading Commission, or CFTC, has expressed concerns about the possible implications of a case the Securities and Exchange Commission, or SEC, brought against a former&#8230;<\/p>\n","protected":false},"author":1,"featured_media":476491,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYTRiMTAxNGYtZGMxYy00ZWIxLWIxYWEtMjIzMmU1YmIyNWViLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75422,74956,74863,74898,70934,72287,67874],"class_list":["post-476490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cftc","tag-coinbase","tag-cryptocurrencies","tag-sec","tag-regulation","tag-security","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/476490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=476490"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/476490\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/476491"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=476490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=476490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=476490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}