Coinbase Joins Ripple in Lawsuit Against the SEC

• Coinbase has filed an amicus brief in support of the dismissal of a lawsuit by the US Securities and Exchange Commission (SEC) against Ishan Wahi.
• The SEC is accused of using old securities rules on a new different technology, while Coinbase argues that the SEC should focus on setting proper rules and guidance related to securities.
• The Blockchain Association and Chamber of Digital Commerce also filed an amicus brief asking for the dismissal of the lawsuit.

Background

In June 2021 and April 2022, Ishan Wahi, a former manager at Coinbase Global, allegedly tipped first-hand knowledge of what assets Coinbase planned to support before making an official announcement via Twitter. This resulted in criminal and civil charges from both the SEC and US Justice Department due to insider trading. Ishan has since pleaded guilty to these charges.

Coinbase’s Amicus Brief

Coinbase has now joined Ripple, Paxos and other crypto firms to file an amicus brief in support of dismissing this case as it believes that existing securities regulations do not apply to digital assets. According to their chief legal officer Paul Grewal, they petitioned the Agency last year for better rules regarding digital asset securities but have yet to receive any feedback from them. It is worth noting that Coinbase does not list securities but would like to if given the opportunity.

Blockchain Association’s Amicus Brief

In February, The Blockchain Association and Chamber of Digital Commerce also filed a separate amicus brief with similar intentions – asking for dismissal based on the fact that old securities rules don’t apply here either.

Conclusion

Although there are valid insider trading and wire fraud claims against Ishan Wahi which he has already pleaded guilty too; Coinbase strongly objects to any potential securities fraud charges as they believe that assets listed on their platform are not classified as such.