What does the SEC’s warning shot at crypto mean? – TechCrunch

YesterdayIt was a huge day the crypto industry. Former CoinbaseA product manager was also arrested along with his brother and a friend. They were charged with running a cryptocurrency insider trading program. the U.S. DepartmentOf Justice (DOJ).

At theAt the same moment, the U.S. SecuritiesAnd Exchange Commission (SEC) filed a separate document on theIn this case, designating a number theAssets traded by theThis classification raised eyebrows when it was called cryptocurrency securities.

“I think it’s odd the SEC would sue three individuals for violating securities law, arguing that at least nine of the 25 digital assets they bought and sold as part of the alleged scheme qualify as securities, but not pursue the exchange that listed these digital assets,” Hailey LennonPartner atlaw firm Anderson KillThe story was told TechCrunch.

TheClassification of some cryptoAssets as securities could have significant implications theThe digital asset industry has greatly benefited from years with little or no regulation.

While cryptoDespite being somewhat exempted from regulations due to its de-novo products, it is now facing similar issues to other financial markets.

InsiderTrading is an art that has existed for a long time before cryptocurrency. Michael FasanelloChief compliance officer atLVL, according TechCrunch. “The crime has stayed the same, it’s just the modality that’s different.”

As theIndustry worries about what lies ahead, according to lawyers and other in the sector. cryptoSpace shared their thoughts TechCrunchWhat theClassification of some cryptoProducts could also be called securities. the industry.