US Court Sides with SEC in Another Crypto Case
A US court has declared that trading certain cryptocurrencies on the secondary market amounts to dealing in securities, thereby falling under the purview of the Securities and Exchange Commission (SEC). Judge Tana Lin delivered this verdict while presiding over an insider trading case involving acquaintances of employees at the crypto exchange Coinbase.
On this page
A US court has declared that trading certain cryptocurrencies on the secondary market amounts to dealing in securities, thereby falling under the purview of the Securities and Exchange Commission (SEC). Judge Tana Lin delivered this verdict while presiding over an insider trading case involving acquaintances of employees at the crypto exchange Coinbase.
Judge Lin pointed to the behavior of issuers who aggressively marketed their own tokens and “fostered expectations of asset value increase” as key evidence. She also noted the developers' keenness to quickly access the secondary cryptocurrency market to ease sales to ordinary users.
Each issuer continued to make such representation regarding the profitability of their tokens even as the tokens were traded on secondary markets,
Lin remarked.
This decision sets a precedent, marking the first time a federal court has classified secondary sales of cryptocurrencies as securities transactions. Given the myriad lawsuits across the country and the variety of judicial opinions, the debate over the legal status of cryptocurrencies is anticipated to escalate to the US Supreme Court shortly.
The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.
Articles by this author
