A court in the United States ruled that trading certain cryptocurrencies on the secondary market constitutes securities trading

A U.S. court ruled that trading certain crypto assets on the secondary market (such as cryptocurrency exchanges) constitutes securities trading, in response to an insider trading case involving Coinbase's former product manager Ishan Wahi, his brother Nikhil Wahi, and their friend Sameer Ramani.

The court stated that these crypto assets are still claimed to have profit potential when traded on the secondary market, thus falling under investment contracts.

Ramani has been prohibited from future violations and ordered to pay a civil penalty equal to twice the amount of profits gained.

The U.S. Securities and Exchange Commission reached settlements with both Wahis last year in what is referred to as "the first-ever case of insider trading involving cryptocurrencies."