TD Cowen warned about the SEC's intention to launch a wave of lawsuits against crypto companies
TD Cowen bank experts announced the readiness of the SEC chairman to initiate a series of lawsuits against the crypto industry. In their opinion, the recent victory in the insider trading case on Coinbase will be an incentive for further pressure on the industry.
Analysts at TD Cowen Bank warn of the intention of Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC), to initiate a series of lawsuits against cryptocurrency companies. This is reported by The Block with reference to representatives of the financial institution.
In their opinion, the reason for the upcoming wave of litigation will be the agency's recent victory in the case of insider trading on the Coinbase exchange. We are talking about a top manager of the company who had access to information about the token listing and traded data.
In May 2023, the SEC settled a dispute with two participants in the fraudulent scheme. Ex-Coinbase product manager Ishan Wah and his brother Nikhil Wah pleaded guilty and agreed to pay a fine. However, the third person involved in the case, Samir Ramani, disappeared from the investigation.
In the end, the court recognized the SEC's arguments as valid and ruled that the tokens traded by the defendant were securities. According to Judge Tana Lin, Ramani was engaged in investment contracts and his activities fall under the jurisdiction of the SEC.
TD Cowen experts note that the court's decision strengthens Gary Gensler's position in the confrontation with cryptocurrency companies. In their opinion, the victory in the mentioned claim creates a legal precedent. It also introduces clearer rules into interaction with the digital asset industry, analysts point out.
According to the bank's representatives, Gensler is trying to create a legal framework for crypto firms through litigation. The head of the SEC will make efforts to maximize this process until the adoption of regulatory rules by the US Congress, according to TD Cowen.
In other words, over the next two years, he will regularly file lawsuits against market players, experts emphasize.
