Chamber of Digital Commerce Criticizes SEC’s Insider Trading Case against Former Coinbase Employees

02/23/2023 06:23 • Blockchain Buzz • 144 views

It is reported that in a non-party opinion statement submitted to the court, the Chamber of Digital Commerce, headquartered in the United States, believed that the insider trading case of the United States Securities and Exchange Commission (SEC) against the former employees of Coinbase should be rejected, because it represents the expansion of the enforcement and supervision movement of the United States Securities and Exchange Commission, and tried to characterize the secondary market transactions of cryptocurrency as securities transactions. The Digital Chamber of Commerce stressed that the US SEC had never been authorized by Congress to invade the digital asset market, and pointed out that in other cases of the Supreme Court, regulators must first be authorized by Congress.

American Digital Chamber of Commerce: The SEC’s insider trading case against former employees of Coinbase should be rejected

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The Chamber of Digital Commerce, a United States-based advocacy group for the digital asset industry, has submitted a non-party opinion statement to the court, arguing that the insider trading case brought by the United States Securities and Exchange Commission (SEC) against former Coinbase employees should be dismissed. The Chamber of Digital Commerce claims that the case represents the SEC’s overreach in its regulatory efforts. In addition, it characterizes the secondary market transactions of cryptocurrency as securities transactions, which it says the SEC has no authority to do.

The insider trading case was filed by the SEC in March against former Coinbase employees, including its Chief Legal Officer, claiming that they misused confidential information to make personal profits during the company’s announcement of the addition of Bitcoin Cash to its platform in December 2017. Coinbase denied any wrongdoing and fired the employees in question.

The Chamber of Digital Commerce, in its statement, argued that the SEC’s case is a prime example of the agency trying to expand its authority and regulatory scope beyond what is authorized by Congress. It noted that the SEC has never been authorized to regulate or oversee the digital asset market and expressed concern that characterizing secondary market transactions of cryptocurrency as securities transactions could have a negative impact on the industry.

The Chamber of Digital Commerce also cited several other cases in which the Supreme Court has ruled that regulators must first be authorized by Congress before they can regulate certain aspects of an industry.

The SEC has been increasingly active in its regulation of the cryptocurrency industry and has taken action against a number of high-profile companies and individuals in recent years, including Ripple and Telegram. While the agency has said it is committed to protecting investors and maintaining fair and orderly markets, critics have accused it of being overly aggressive in its approach.

In conclusion, the Chamber of Digital Commerce’s statement highlights the tension between regulators and the digital asset industry, with the former seeking to expand their oversight and enforcement powers and the latter fighting to maintain its autonomy and innovation. The outcome of the SEC’s case against former Coinbase employees could have significant implications for the future of the digital asset market and the balance of power between industry players and regulators.

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