A business columnist for the Los Angeles Times noted that Judge Sam Bankman Fried “issued another ruling that could have far-reaching implications for crypto businesses.”
U.S. Judge Failla has authorized the Securities and Exchange Commission to proceed with a lawsuit alleging that giant cryptocurrency broker and exchange Coinbase trades securities without a license.
What's important about Failla's ruling is that she quickly rejected Coinbase's argument that virtual currency is a new asset outside the SEC's jurisdiction, and therefore not a “security.” Cryptocurrency advocates have made similar arguments in court and in Congress, urging lawmakers to create an entirely new regulatory structure for cryptocurrencies, preferably one that supersedes existing rules and regulations promulgated by the SEC and commodity exchanges. It calls for the creation of a less rigid regulatory structure. Futures Trading Commission…
Phyla saw through the argument without breaking a sweat. “The nomenclature 'cipher' may be recent,” she wrote. “However, the challenged transactions fit comfortably within the framework that courts have used to identify securities for nearly 80 years…” Since Congress has not specifically enacted regulations, Coinbase He said the SEC's lawsuit should be dismissed because it targets The judge's opinion on that argument was withering. “Although certainly large and important, the crypto industry is “far from being a ‘part of the American economy’ with any significant economic or political significance,” she wrote.
Failla's decision followed another New York federal court ruling in which a judge deemed cryptocurrencies to be securities. In this case, Judge Edgardo Ramos dismissed the SEC's charges against Gemini Trust, a cryptocurrency trading company run by Cameron and Tyler Winkelboss, and crypto financier Genesis Global Capital. refused. The SEC charged that Gemini's scheme in which it pooled customers' crypto assets and loaned them to Genesis while promising high interest rates to customers was an unregistered security. Similar to the case against Coinbase, the SEC case will also proceed…
The hangover from March continued this month. On April 5, a federal jury in New York found Terraform Labs and its CEO and major shareholder Do Kwon responsible for what the SEC called a “massive cryptocurrency fraud.” . The value of UST has fallen to virtually zero. The SEC said it “erased more than $40 billion in total market value and shocked the crypto community.”