Although SEC insider trading cases are not uncommon, this SEC enforcement action is the first where the security is a crypto asset. Further, this action may be the spark that ignites a wave of SEC enforcement actions against other players in the industry. IN DEPTHSEC ALLEGATIONS OF CRYPTO ASSET SECURITIESWhile the SEC noted that the defendants’ scheme involved at least 25 crypto assets, the SEC’s complaint identifies only nine crypto assets that are alleged to constitute securities. [6]Other regulators of the crypto asset industry also had strong responses to the SEC bringing an enforcement action under these circumstances. The outcome of this most recent SEC enforcement action will not only provide additional color as to the SEC’s assessment of crypto assets vis-à-vis the securities laws but may be a prelude to additional crypto asset enforcement actions to come.

Source: Wall Street Journal August 13, 2022 04:59 UTC