• Coinbase has filed an amicus brief in the SEC v Wahi case in support of the dismissal of the lawsuit.
• The Blockchain Association and the Chamber of Digital Commerce have also filed a separate amicus brief asking for dismissal of the lawsuit.
• Coinbase objects to securities fraud charges, as assets listed on their platform are not securities.
Coinbase Joins Ripple to Ask SEC for New Rules and Guidance
Coinbase has joined Ripple and other crypto firms in filing an amicus brief in support of the dismissal of a misguided lawsuit against Ishan Wahi, a former manager at Coinbase Global, and his associates. The US Securities and Exchange Commission (SEC) accused them of engaging in insider trading using information about upcoming asset listings on Coinbase’s platform.
Argument Against Old Securities Rules
Coinbase argues that SEC should focus on setting proper rules and guidance related to securities instead of some misguided securities lawsuit. They claim that existing rules do not apply to digital assets, thus calling for new regulations that can properly address this new technology. According to Paul Grewal, chief legal officer at Coinbase, they petitioned the Agency last year to make rules on digital asset securities but have not heard anything since then.
Separate Amicus Brief Filed by Blockchain Association
The Blockchain Association and the Chamber of Digital Commerce separately filed an amicus brief asking for dismissal of the lawsuit as well. They argued that old security regulations cannot be applied to new technologies such as blockchain-based digital assets without making necessary adjustments first.
Coinbase Opposes Securities Fraud Charges
While acknowledging that Ishan had committed insider trading and wire fraud offenses, Coinbase opposes any charges relating to securities fraud as they believe their listed assets are not securities according court filings.
Coinbase is now part of other crypto firms who are pushing US regulators towards creating new rules concerning digital asset securities rather than trying to enforce outdated ones which may be ineffective or even detrimental in regulating these emerging technologies.