The two cryptocurrency exchanges are under increased U.S. scrutiny for allegedly listing unregistered securities and evading sanctions, respectively.
Scrutiny over cryptocurrency exchanges from U.S. regulators is growing by the day.
The former Coinbase employee, Ishan Wahi, allegedly worked with his brother and one other individual to leverage insider information related to the listing of specific tokens to take advantage of market conditions.
“The SEC’s charges put a spotlight on an important problem: the US doesn’t have a clear or workable regulatory framework for digital asset securities,” wrote Grewal. “And instead of crafting tailored rules in an inclusive and transparent way, the SEC is relying on these types of one-off enforcement actions to try to bring all digital assets into its jurisdiction, even those assets that are not securities.”