North American Securities Administrators Association Supports SEC in Coinbase Lawsuit
The North American Securities Administrators Association (NASAA), representing securities regulators in the US, Canada, and Mexico, has filed an amicus brief in support of the US Securities and Exchange Commission (SEC) in its legal action against Coinbase, the leading crypto exchange in America.
NASAA agrees with the SEC’s argument that certain cryptocurrencies listed on Coinbase should be classified as securities and therefore subject to regulatory oversight. It also believes that the Howey test, used to determine if an asset is a security, should be applied to cryptocurrencies.
The association has urged the US District Court Southern District of New York to reject Coinbase’s attempt to evade regulatory obligations and to treat digital assets as special. It supports the SEC’s position that Coinbase violated federal securities laws by operating as a brokerage and clearing agency without registering as a national securities exchange.
In response, Coinbase has requested the court to dismiss the SEC case, claiming that the regulator overstepped its authority and abandoned its own interpretations of securities laws. However, NASAA maintains that the SEC’s theory aligns with existing securities laws and is consistent with their longstanding position.
Hot Take: NASAA Backs SEC in Coinbase Case, Rejecting Crypto-Specific Regulations
The NASAA’s support of the SEC in the Coinbase lawsuit highlights their opposition to implementing dedicated rules for cryptocurrencies. They argue that existing regulations and the Howey test should be applied to determine if crypto assets are securities. This stance reinforces the need for consistent oversight and regulation across all participants in the securities markets.
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