SEC names nine unregistered cryptoassets on Coinbase

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The Security and exchange commission has named atleast nine cryptocurrencies that are unregistered securities in a complaint filed against a former coinbase employee

The SEC today claimed in a new court filing that at least nine digital assets listed on the cryptocurrency exchange Coinbase are unregistered securities.

The nine assets in question are AMP (AMP), Rally (RLY), DerivaDEX (DDX), XYO (XYO), Rari Governance Token (RGT), LCX (LCX), Powerledger (POWR), DFX Finance (DFX), and Kromatika (KROM).

“A digital token or crypto asset is a crypto asset security if it meets the definition of a security, which the Securities Act defines to include ‘investment contract,’ i.e., if it constitutes an investment of money in a common enterprise, with a reasonable expectation of profit derived from the efforts of others,” the SEC wrote in a complaint filed today against a former Coinbase employee accused of insider trading.

The SEC and the Department of Justice today announced charges against former Coinbase Product Manager Ishan Wahi and two others, accusing them of running an insider-trading scheme that earned them more than $1.1 million in illicit gains. Wahi allegedly tipped off his brother Nikhil Wahi and his friend, Sameer Ramani, about upcoming token-listing announcements on the crypto exchange.

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