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SEC Tests Its Reach With Coinbase Insider Trading Case

Member Cory Flashner spoke to Law360 about the SEC's decision to sue a former Coinbase manager for insider trading and how this allegation could help the SEC assert broad jurisdiction over the cryptocurrency space. Cory commented, "It's an inferential accusation... The 'securities' are on [Coinbase's] exchange... In the long run, even a less-than-perfect regulatory regime would likely be more helpful to large cryptocurrency companies than an unclear one... You can grow with restrictions and guidance...If you don't know where the fair and foul lines are, it's really hard to keep growing and keep expanding."