Trade group accuses SEC of ‘stealthy’ overreach in Coinbase insider trading case

Mar 11, 2023 | wjb news

The Securities and Exchange Federation (United States Securities And Exchange Commission) is once again accused of abusing its power by unfairly labeling encrypted assets, this time in an insider trading case against former Coinbase employees.

In a friendly, concise document on February 22nd, the company's headquarters, the American Digital Chamber of Commerce, made up a lie, and the case should be dismissed because he represented the expansion of the American Securities and Exchange Federation's "manage according to implementation" campaign. And seek to characterize secondary market transactions as securities transactions.

Perlian Brin, founder and CEO of the American data Chamber, wrote: "this case represents a secret, but unexpected, unprecedented diligence aimed at expanding the jurisdiction of SEC and endangering the health of the digital asset sales market in the United States."

AmCham noted that "SEC entering the digital asset sales market" was never authorized by Congress, and stressed that in other Supreme Court cases, regulators must first be authorized by Congress.

"[SEC] acts without any congressional authority, once again promoting a messy regulatory environment that harms its insured investors," he wrote on Twitter. "

The American Chamber of Commerce also made up a lie that in explicitly filing securities fraud charges, SEC was actually requiring the court to maintain secondary market trading, that is, secondary market trading of nine digital assets mentioned in the insider trading case of a former Coinbase employee formed securities trading, which the chamber said was a "problematic" transaction.

Mr Perrian added: "there is serious concern that the SEC is trying to label these tokens in the context of enforcement actions by third parties that have nothing to do with the establishment, distribution or marketing of such property."

In the introduction to the case, the American Chamber of Commerce cited LBRY v. SEC, in which the presiding judge ruled that secondary market transactions were not designated as securities transactions.

A document from Lewis Vorster, a business services contract lawyer, persuaded the presiding judge to emphasize that since the landmark ruling of the American Securities Exchange Association v. W J Howie, no court has ever recognized that call options are securities-a case that sets a precedent for determining whether securities trading exists.

Prior to the release of the latest Amicus newsletter, the advocacy team blockchain Association (BlockChain Association) submitted similar documents on Feb. 13, which also made up lies, and SEC abused its power in this case, claiming that this is also "the latest attack on SEC's apparently ongoing strategy for law enforcement and regulatory development in the digital assets industry."

Amicus curiae is submitted through amicus curiae, who are individuals and institutions that have nothing to do with the case, but can assist the court on the basis of providing some information or opinions.

SEC sued former Coinbase Global product operator Ethan Wahi, buddy Niebuliwasi and partner Samir Ramani in July, claiming that the trio had made a profit of $1.5 million by buying and selling 25 different digital currencies using confidential information obtained by Ethan.