- They mistakenly refer to certain assets as securities.
- Although they have no legal basis for this yet
Chamber of Digital Commerce urged a federal court to dismiss a lawsuit filed by the SEC against a former Coinbase employee. Recall that we are talking about an ex-manager who is accused of insider trading. The applicants believe that several crypto assets are incorrectly classified in the case. They are recognized as securities, which is fraught with big problems.
The Chamber of Digital Commerce is an American blockchain advocacy group. In a statement, they allege that the SEC is using the case against Coinbase as a “back door” to attempt to designate certain crypto assets as securities. At the same time, Congress has not yet adopted clear rules regarding which tokens are considered securities.
Recall that in July, the SEC accused ex-Coinbase employee Ishan Wahi and two other people of insider trading. They allegedly profited from at least 25 crypto assets using inside information. 9 out of 25 assets, according to the agency, are securities.
The Chamber of Digital Commerce protests against this wording. They stated that if the story continues, then crypto exchanges offering these 9 tokens will fall under the regulatory actions of the authorities and private litigation.
By the way, the brother of Ishan Wahi (ex-manager of Coinbase) received 10 months in prison in this case.
