The SEC in the United States has recently classified nine crypto assets as securities in the market. The institution’s guidance was disclosed during an insider trading prosecution.
The classification of the crypto assets was filed by the SEC in a prosecution against a former product manager at Coinbase. For the institution, he provided insider information to relatives.
The information mentioned assets that the exchange could list, which benefited former Coinbase product manager, a brother and a friend of the former Coinbase product manager.
In addition to the SEC, the DOJ is part of the insider trading prosecution, where nine crypto assets are classified as securities. However, this is not the first time the SEC has compared digital assets to securities in the market.
This time, the SEC did not ask for explanations for the crypto assets mentioned in the indictment against Coinbase’s former product manager. According to the institution, digital currencies such as:
- AMP (AMP)
- DFX Finance (DFX)
- Kromatika (KROM)
- Rari Governance Token (RGT)
- LCX (LCX)
- Powerledger (POWR)
- DerivaDEX (DDX)
- Rally (RLY)
- XYO (XYO)
For Coinbase, the crypto assets singled out by the SEC as securities should not be classified that way. The company said that there is a lawsuit in the Department of Justice that does not cite fraud related to securities represented in digital currencies.
Through a post on the exchange’s blog, the company speaks that the classification was “an unfortunate distraction” by the SEC. In addition, Coinbase is not a party to the lawsuit filed by the institution, so it cannot appeal the SEC’s determination.