SEC is Creating Rules via Judicial Precedent: Coinbase Fraud Case
Arthur Jakoby, co-chair of Herrick's Securities Litigation and Enforcement Group, spoke to Crowdfund Insider about the Securities and Exchange Commission's recent action against a former Coinbase manager and two partners regarding allegations of insider trading.
Arthur is quoted saying, "With the SEC complaint against a former Coinbase manager, and two other individuals, the SEC is once again gritting its teeth and flexing its regulatory muscles by attempting to legislate SEC rules governing digital assets through the creation of judicial precedent."
Arthur noted that there is currently no specific SEC legislative rule designating when a digital asset is a security and subject to the SEC’s regulatory maze and insider trading bans. He added, "Instead of engaging in transparent and public rulemaking, with industry comments, which would result in clearly defined rules and regulations regarding digital assets, the SEC has chosen to mark its regulatory territory via enforcement actions in the federal court system.”