Skadden Discusses Digital Asset Insider Trading Case

The CLS Blue Sky Blog

Alexander C. Drylewski Lara A. Flath Steven R. Glaser Stuart D. Levi David Meister Daniel Michael Alissa M. Curran

Skadden attorneys take a closer look at an insider trading case filed by the SEC against a former Coinbase product manager whose motion to dismiss raises new questions as to whether digital assets are securities. The authors conclude that a decision by the court could be notable, as it might provide a rare glimpse of judicial guidance as to the applicability of U.S. securities laws to digital tokens traded on secondary markets and not in the context of a fundraising event.