![]() ![]() New tokens registration#Prior to the filing of Wahi, despite industry requests for rulemaking and clarification, the SEC has made no direct statements as to whether cryptocurrency or tokens are a “security.” Of significant relevance are the facts that (i) Coinbase claims no digital assets listed on its exchange are securities, and (ii) the issuance of a security requires, among other things, registration (or exemption from registration) with the SEC prior to the offer and sale thereof, disclosure of material information to potential investors, and trading restrictions following issuance: requirements which Coinbase and issuers of tokens on the platform almost certainly did not believe applied to them. Without the SEC’s interpretation of the tokens or the contracts associated with the tokens as securities, the SEC would have no statutory authority to bring an action alleging insider trading. In the complaint, the SEC notably refers to certain investment contracts tied to cryptocurrency as “crypto asset security” meeting the Howey test. Ishan Wahi, Nikhil Wahi and Sameer Ramani (“Wahi”). The SEC filed a complaint on July 21, 2022, claiming the former employee and his brother and friend traded on inside information relating to tokens about to be listed on the Coinbase exchange, one of the largest digital asset trading platforms. (“Coinbase”), alleging insider trading of securities listed on the exchange. In the long running question of whether cryptocurrency tokens are securities, the Securities and Exchange Commission (the “SEC”) has volleyed new claims against a former employee of Coinbase Global, Inc. Long-Term Care/Long-Term Services and Supports.Technology and Intellectual Property Litigation.TCPA Compliance and Class Action Defense.Investigations, Compliance and White Collar Defense.Intellectual Property Protection and Enforcement.Government Litigation and Administrative Law. ![]() ![]() Financial Services Litigation and Enforcement. ![]()
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