- Blockchain Association has filed an amicus brief in an insider trading case.
- The SEC allegedly denied the creators of the tokens in question the opportunity to present a defense.
- This case is the latest attempt by the SEC to expand its authority improperly.
The Blockchain Association previously stated that it had submitted an amicus brief in the complaint that the United States Securities and Exchange Commission (SEC) has brought against three persons for allegedly engaging in insider trading.
The SEC, apparently, is attempting to produce a “chilling effect” on the blockchain industry. This move is made possible by allegedly classifying nine tokens at the center of an insider trading case as securities while simultaneously denying the creators of the tokens the opportunity to present a defense against the SEC’s accusations.
Tokens such as AMP, XYO, LCX, POWR, RLY, RGT, DDX, DFX, and KROM are included in the discussion over this matter. However, according to data provided by Coinmarketcap, the number of transactions involving these tokens is relatively low, and the service does not place them among the top 150 tokens it monitors.
However, according to Kristin Smith, Blockchain Association Chief Executive Officer, the SEC’s regulation by enforcement strategy is not new. The CEO says:
With this action, the SEC’s actions target third parties who have no meaningful opportunity to defend themselves.
According to Smith, the SEC has done more to confuse than clarify the application of U.S. securities laws, spreading fear and cultivating distrust among the market participants the agency is tasked to protect.
Furthermore, according to Kristin, this case is the latest attempt by the SEC to improperly expand its authority, drawing in third-party actors who cannot engage or refute the SEC’s claims.
Investors may also recall that U.S. lawmakers sent Gary Gensler, head of the Securities and Exchange Commission (SEC), an ultimatum demanding disclosure of SEC inquiry findings related to FTX.