What does the SEC’s warning shot at crypto mean?

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There was a big day for the industry yesterday. The former product manager was arrested along with his brother and a friend and charged with running a scheme to trade on inside information.

A number of the assets traded by the group were labeled as cryptocurrencies securities by the SEC.

The SEC claims that at least nine of the 25 digital assets they bought and sold as part of the alleged scheme qualify as securities, but not the exchange that listed these digital assets.

“The truth is, if the Feds wanted this industry regulated — it would be.” Michael Fasanello, chief compliance officer, LVL

The digital asset industry has largely benefited from years of little to no regulatory oversight as a result of the classification of somecryptocurrencies as securities.

There are issues similar to what other financial markets have seen, despite the fact that it is free from regulation.

Insider trading has been going on for a long time, according to Michael Fasanello. The crime hasn't changed, it's just the way it's done.

Lawyers and other people in the space shared their thoughts on what the classification of some products as securities could mean for the industry.