This ruling by a judge in the Southern District of New York refutes the central argument used by Coinbase and many others in the cryptocurrency world that cryptocurrencies are entirely new assets that do not fall under the jurisdiction of the SEC.
The judge ignored this argument, saying that “cryptocurrency transactions fit well within the framework that courts have used to define securities for nearly eighty years.” He rejected Coinbase’s argument that the lack of specific cryptocurrency rules passed by Congress should preclude the SEC’s lawsuit.
These decisions point to a potential clampdown on the crypto industry by the SEC. Stricter regulations and oversight may be on the horizon as crypto assets are potentially classified as securities. This creates uncertainty for cryptocurrency companies and investors in the US.
Source: Ferra
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