Washington, D.C., Feb. 13, 2023 — Blockchain Association announced today that it has filed an amicus brief in the U.S. Securities and Exchange Commission’s (SEC) lawsuit alleging insider trading against three individuals. While the SEC’s strategy of advancing its digital asset regulatory agenda through enforcement actions is well-documented, this case expands that effort by attempting to punish absent third parties. The SEC’s actions in this case exemplify the agency’s muddled and harmful approach to the digital assets industry, which intentionally avoids public rulemaking engagement and further confuses investors and market participants. A ruling that adopts the SEC’s perspective on the investment contract analysis would not only have a drastic impact on decades-long precedent, but would also validate the SEC’s attempt to expand its regulation by enforcement strategy to third parties who have no means of redress.
The following statement is attributed to Kristin Smith, Blockchain Association CEO:
“The SEC’s regulation by enforcement strategy is not new. With this action, however, the SEC’s actions target third parties who have no meaningful opportunity to defend themselves. The SEC has done more to confuse rather than clarify the application of U.S. securities laws, spreading fear and cultivating distrust among the very market participants the agency is tasked to protect. This case is the latest attempt by the SEC to improperly expand its own authority, drawing in third party actors who have no ability to engage or refute the SEC’s claims.”
About Blockchain Association: Blockchain Association is the collective voice of the cryptocurrency industry. Our members include the sector’s leading investors, companies, and projects, working together to support a future-forward, pro-innovation national policy and regulatory framework for the crypto economy. Find us at theblockchainassociation.org. Follow us @BlockchainAssn.