• Coinbase files an amicus brief in the SEC v Wahi case in support of the dismissal of the lawsuit.
• The US Securities and Exchange Commission (SEC) and US Justice Department filed a civil and criminal charge against Ishan Wahi and his brother Nikhil Whai, as well as their friend, Sameer Ramani for insider trading.
• Coinbase strongly opposes the securities fraud charges and is joined by Ripple, Paxos, Blockchain Association, and Chamber of Digital Commerce to ask for new rules related to securities.
Coinbase Files Amicus Brief
Coinbase has filed an amicus brief in the SEC v Wahi case asking for the dismissal of the lawsuit on grounds that existing securities rules do not apply to digital assets. The company argues that instead of some misguided securities lawsuit, SEC should prioritize setting proper rules and guidance related to securities.
Insider Trading Charges Against Ishan Wahi
The US Securities and Exchange Commission (SEC) along with US Justice Department have filed a civil and criminal charge against former Coinbase manager Ishan Wahi, alongside his brother Nikhil Whai, and their friend Sameer Ramani alleging them of engaging in insider trading. It was reported that Ishan had first-hand knowledge of the kind of assets Coinbase planned to support before making an official announcement on Twitter. He then shared this non-public information with his brother Nikhil and Ramani repeatedly in June 2021 & April 2022 respectively.
Coinbase Opposes Securities Fraud Charges
Coinbase chief legal officer Paul Grewal has opposed the securities fraud charges claiming that assets listed on their platform are not securities but they would like them to be so they petitioned SEC last year to begin a rulemaking on this issue with 50 questions needing answers which they haven’t received any response from yet. Despite admitting validity in insider trading & wire fraud charges against Ishan who pleaded guilty; Coinbase still objects to being charged for securities fraud as according to them it does not apply here.
Separate Amicus Brief Filed By Blockchain Association
In February this year, Blockchain Association & Chamber of Digital Commerce also filed a separate amicus brief asking court for dismissal of this lawsuit citing unsuitability of old security laws for digital assets & need for new rules related to security assessment & listing process instead.
Joining Forces In Support Of Dismissal
– – – – – – – – — — — — — + ++ +++ ++++ +++++ +++++++ +++++++++ +++++++++++ +++++++++++++ +++++++++++++++ ++++++++++++++++++ Coinbase joins Ripple, Paxos, Blockchain Association & Chamber of Digital Commerce to sue SEC over its use outdated laws while assessing digital assets & urge it to make proper rules & regulations related to security assessment & listing process instead through an amicus brief supporting dismissal from this lawsuit particularly charging them with security fraud based upon misapplication law due lack adaptability current regulations towards technology advancement seen recently