American Digital Chamber of Commerce stands against SEC’s action on insider trading by Coinbase’s former employee

02/25/2023 22:52 • Metaverse & Beyond • 102 views

It is reported that the American Digital Chamber of Commerce is trying to prevent the United States Securities and Exchange Commission (SEC) from filing a lawsuit against a former Coinbase (COIN) employee accused of insider trading. Parianne Boring, the founder of the organization, said that if the SEC succeeds, many digital assets may be defined as securities.

Founder of the Digital Chamber of Commerce: SEC took the Coinbase insider trading case as a way to define digital assets as securities

Interpretation of the news:

The American Digital Chamber of Commerce (ADCC) has recently been in the news for taking a strong stand against the United States Securities and Exchange Commission (SEC). The ADCC is reportedly trying to prevent the SEC from filing a lawsuit against a former Coinbase employee accused of insider trading.

According to Parianne Boring, the founder of the ADCC, if the SEC succeeds in this lawsuit, it could have far-reaching consequences. Boring warned that if the SEC wins the case, it may define many digital assets as securities. This could have a significant impact on the cryptocurrency industry as a whole.

The dispute between the SEC and the ADCC centers on whether or not digital assets should be considered securities. The SEC has historically taken a very strict view on this matter. For example, in 2017, it declared that digital tokens issued by The DAO, a blockchain-based organization, were securities. The SEC’s action led to The DAO being shut down, and over $50 million being returned to investors.

The ADCC is taking a different stance. It believes that many digital assets are not securities, and should not be regulated as such. According to Boring, the SEC’s actions could stifle innovation in the industry and lead to a loss of jobs.

The ADCC has also been critical of the SEC’s approach to insider trading. In the case of the former Coinbase employee, the SEC has accused the individual of using confidential information to make trades ahead of a major announcement. The ADCC argues that the SEC’s case is weak and unsubstantiated, and that the regulator is overreaching.

In conclusion, the ADCC’s position is that the SEC’s actions could have a chilling effect on the cryptocurrency industry as a whole. The organization believes that the regulator is taking an overly strict approach to the issue of digital assets as securities. While the outcome of the lawsuit remains to be seen, it is clear that there is a growing divide between the ADCC and the SEC on these matters.

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