Crypto Giant Coinbase Admits It’s Eyeing Securities: SEC v. Wahi

SNEAK PEEK

• Coinbase files amicus brief in support of insider trading defendants.
• The exchange condemns the defendants’ conduct but supports their motion to dismiss.
• Coinbase denies selling securities but would like to offer digital-asset securities.

Cryptocurrency trading platform Coinbase has submitted an amicus brief in support of a move to dismiss the insider trading lawsuit that was launched by the United States Securities and Exchange Commission (SEC) against former Coinbase product manager Ishan Wahi and other individuals.

Coinbase criticized the defendants’ behavior in the brief, but it supported their motion because the SEC assumed that the exchange had listed securities on its platform. Coinbase also indicated that the company has fully cooperated with the inquiry and hinted that it is also subject to judgment in the case. Coinbase’s states:

Concretely, Coinbase argues that the US Securities and Exchange Commission’s (SEC) case against former product manager Ishan Wahi and others for insider trading should not implicate its own listing decisions. 

In an amicus brief filed in support of the defendants’ motion to dismiss, Coinbase stated that the SEC was asking the court to rule on issues central to its listing decisions. Additionally, the exchange denied selling securities but said it would like to offer digital-asset securities if a clear regulatory framework was established. Coinbase added that it supported the defendants’ motion but condemned their conduct.

In related updates, Coinbase has highlighted that the US Justice Department did not press securities law charges against defendants in its insider trading case, including former product manager Ishan Wahi, who pleaded guilty.