{"id":551944,"date":"2023-02-15T00:15:00","date_gmt":"2023-02-14T21:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/blockchain-association-files-amicus-brief-in-wahi-case-says-sec-exceeded-authority\/"},"modified":"2023-02-15T00:15:00","modified_gmt":"2023-02-14T21:15:00","slug":"blockchain-association-files-amicus-brief-in-wahi-case-says-sec-exceeded-authority","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/blockchain-association-files-amicus-brief-in-wahi-case-says-sec-exceeded-authority\/","title":{"rendered":"# Blockchain Association files amicus brief in Wahi case, says SEC exceeded authority"},"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-6a34d541a6241\" 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-6a34d541a6241\" 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\/blockchain-association-files-amicus-brief-in-wahi-case-says-sec-exceeded-authority\/#%E2%80%9D_Blockchain_Association_files_amicus_brief_in_Wahi_case_says_SEC_exceeded_authority_%E2%80%9C\" >&#8221; Blockchain Association files amicus brief in Wahi case, says SEC exceeded authority &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Blockchain_Association_files_amicus_brief_in_Wahi_case_says_SEC_exceeded_authority_%E2%80%9C\"><\/span>&#8221; Blockchain Association files amicus brief in Wahi case, says SEC exceeded authority &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDIvNDdhMDkyODgtYjljOS00NTk2LWIwZDAtMGExMzI2NDE0Zjk3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4bbf85c5>The Blockchain Association filed an amicus brief Feb. 13 in the United States Securities and Exchange Commission (SEC) case against former Coinbase Global product manager Ishan Wahi and his associates. The advocacy group expressed its support for the defendants\u2019 argument for dismissal, where they claimed the SEC had exceeded its authority in the case. The case alleging unregistered securities sales of nine tokens is being heard in the U.S. District Court of Western Washington.<\/p>\n<p>Calling the case \u201cthe latest salvo in the SEC\u2019s <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>arent ongoing strategy of regulation by enforcement in the digital assets space,\u201d the amicus curiae, or \u201cfriend of the court,\u201d brief noted that the SEC declared nine tokens to be securities, with no prior findings. The brief stated:<\/p>\n<blockquote><p>\u201cThe SEC conflates the tokens themselves, which are, after all, merely software, with any alleged investment contract pursuant to which those tokens were allegedly sold.\u201d<\/p><\/blockquote>\n<p>The brief does not discuss the defendants\u2019 \u201cmajor questions\u201d argument, but only reminds the court of the 2022 Supreme Court case of West Virginia v. the Environmental Protection Agency that found that the \u201cmajor questions\u201d doctrine applies when  federal agencies assert \u201chighly consequential power beyond what Congress could reasonably be understood to have granted.\u201d <\/p>\n<p><strong><em>Related: SEC listing 9 tokens as securities in insider trading case \u2018could have broad implications\u2019 \u2014 CFTC<\/em><\/strong><\/p>\n<p>The brief highlighted three ways in which the case could harm the blockchain industry and the broader public. First, the brief stated, token creators for those particular tokens, holders and users \u201care not defendants in this action, and have no meaningful way to counter the SEC\u2019s pronouncements.\u201d <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today we filed an amicus brief in SEC v. Wahi. While the SEC\u2019s strategy of advancing its digital asset regulatory agenda through enforcement actions is well-documented, this case expands that effort by attempting to punish absent third parties.<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/erHQvzucZZ\">https:\/\/t.co\/erHQvzucZZ<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/jKHAI0EguF\">https:\/\/t.co\/jKHAI0EguF<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/AnBD75eSsJ\">pic.twitter.com\/AnBD75eSsJ<\/a><\/p>\n<p>\u2014 Blockchain Association (@BlockchainAssn) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BlockchainAssn\/status\/1625310326110490625?ref_src=twsrc%5Etfw\">February 14, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The case is likely to be settled rather than being adjudicated on its merits, the brief noted, in line with historical trends. Thus the SEC \u201cmaximized its chances of being able to allege whatever it wants, with a minimal risk of being held to account for it.\u201d <\/p>\n<p>Second, the SEC\u2019s case may cause exchanges to reconsider listing the tokens at issue, the brief stated, and it may have \u201ca chilling effect\u201d on the blockchain industry. The brief stated:<\/p>\n<blockquote><p>\u201cMerely by proclaiming that a token is a security, the SEC gives certain tokens a \u201cscarlet letter,\u201d impairing their value, hampering any secondary market trading of the token, and interfering with technological development.\u201d <\/p><\/blockquote>\n<p>Finally, the brief claimed that market participants are unable to determine what is or is not a security, and \u201cThe SEC has shown little willingness to answer those questions.\u201d <\/p>\n<p>Ishan Wahi and his brother Nikhil pleaded guilty the criminal case brought against them for insider trading by the Justice Department in the Southern District of New York. Their codefendant Sameer Ramani remains at large.<\/p>\n<p>The Blockchain Association is a nonprofit advocacy group with almost 100 members that promotes \u201ca pro-innovation policy environment for the digital asset economy.\u201d <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/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\/blockchain-association-files-amicus-brief-in-wahi-case-says-sec-exceeded-authority\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Blockchain Association files amicus brief in Wahi case, says SEC exceeded authority &#8220; The Blockchain Association filed an amicus brief Feb. 13 in the United States Securities and Exchange Commission (SEC) case against former Coinbase Global product manager Ishan Wahi and his associates. The advocacy group expressed its support for the defendants\u2019 argument for&#8230;<\/p>\n","protected":false},"author":1,"featured_media":551945,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/47a09288-b9c9-4596-b0d0-0a1326414f97.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74863,139904,74898,70934,71407],"class_list":["post-551944","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cryptocurrencies","tag-inside-bitcoins-conference","tag-sec","tag-regulation","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551944","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=551944"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/551944\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/551945"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=551944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=551944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=551944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}