Coinbase slams the SEC over an insider trading case, says none of the tokens it lists are securities.
Coinbase has denied claims made by the Securities and Exchange Commission that it provides
An ex-Coinbase product manager was charged, along with two others, in a first-of-its-kind
crypto insider trading case
Prosecutors in the US accused the individuals of conspiring to profit from the listing of new tokens on the Coinbase platform before they were publicly announced.
The SEC stated in a separate complaint filed on Thursday that
nine of the 25 tokens allegedly traded in the scheme were securities
Paul Grewal, Coinbase's chief legal officer, denied the claims in a blog post titled "Coinbase does not list securities. End of Story."
The SEC's stance is significant as it implies that Coinbase may be required to define some of the cryptocurrencies it offers as regulated financial instruments.
The process of listing securities, such as company shares, entails stringent disclosure and registration requirements.