Monthly Round-Up APRIL 2022 SEC Warns Coinbase of Potential Securities Charge Judge Strikes Down Affordable Care Act Rules on Required Preventive Health Services A federal judge in Texas has struck down a major provision of the Affordable Care Act (ACA) that requires most insurers to cover a range of preventive services, including screenings for terminal illnesses and various medication prescriptions. The Securities and Exchange Commission (SEC) has issued a Wells Notice to leading crypto exchange platform Coinbase, warning the firm that it has identified potential violations of US securities law. The ruling, which is expected to affect more than 150 million people across the US and is likely to be appealed, represents a new blow to the Obamaera health law and means that the ACA’s contraceptive coverage requirements are once again at risk of repeal. In a statement in July 2022, a group of 60 US health organisations led by the American Medical Association warned of the potential consequences of such a ruling. “Rolling back this access would reverse important progress and make it harder for physicians to diagnose and treat diseases and medical conditions that, if caught early, are significantly more manageable,” the statement said. US District Judge Reed O’Connor ruled on 30 March that preventive care recommendations issued by the US Preventive Services Task Force do not have to be complied with, and blocked the federal government from enforcing these recommendations. This means that insurance companies will no longer be legally bound to cover the preventive services recommended by the task force. Preventive services affected include screenings for diabetes and various cancers, vision screening for children, and various screenings and intervention for pregnant people. of the regulatory argument against the recipient organisation and offer an opportunity to dispute the watchdog’s findings. This move comes as part of a wave of enforcement actions taken against prominent US crypto organisations by the SEC. Earlier this year, the watchdog sued exchange Gemini and lender Genesis for failing to register a crypto-lending scheme as a securities offering. Shares in Coinbase fell by 13% within 24 hours of the Wells Notice’s disclosure. “Based on discussions with the Staff, the Company believes these potential enforcement actions would relate to aspects of the Company’s spot market, staking service Coinbase Earn, Coinbase Prime and Coinbase Wallet,” Coinbase said in a regulatory filing on 21 March. ”The potential civil action may seek injunctive relief, disgorgement, and civil penalties.” Wells Notices are typically issued as part of the final steps taken by the SEC prior to formally issuing charges against an organisation. These typically lay out the framework 8 LAWYER MONTHLY APRIL 2023
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