The U.S. Securities and Exchange Commission (SEC) has designated nine cryptocurrencies as securities.
The SEC has stated that there are securities on Coinbase, pointing to nine cryptocurrencies. This was included in a file accusing a former Coinbase employee and two others of electronic fraud.
The cryptocurrencies the SEC points to are AMP, RLY, DDX, XYO, RGT, LCX, POWR, DFX, and KROM. It was stated that each of these cryptocurrencies is linked to insider trading.
The SEC said:
“Our message regarding these charges is clear: Fraud is fraud. It doesn’t matter if it happens on the blockchain or on Wall Street.
This is the third instance where the SEC has designated certain cryptocurrencies as securities.
Former SEC chairman Jay Clayton has said in the past that Bitcoin is not a security. Similarly, current SEC Chairman Gary Gensler used the same statements.
Coinbase Responded
Coinbase has responded to the SEC filing. The exchange said that the laws in the US are not keeping up with the digital world and need to be corrected.
“Crypto-assets as securities need updated rules to be guided by safe and efficient practices. Non-securities cryptoassets need the certainty of staying outside of these rules.”
