The Crypto Council for Innovation, Blockchain Association, Chamber of Digital Commerce, and DeFi Education Fund File Amicus Briefs in Support of Coinbase
The U.S. Senator Cynthia Lummis and several crypto lobbying organizations have filed amicus briefs in a federal court to dismiss a lawsuit brought by the Securities and Exchange Commission (SEC) against Coinbase. The organizations argue that the SEC is overstepping its authority by alleging that platforms like Coinbase are unregistered securities exchanges, brokers, and clearinghouses. The amicus briefs echo Coinbase’s own arguments in its motion to dismiss the case.
Key Points:
– The amicus briefs were filed by the Blockchain Association, Crypto Council for Innovation, Chamber of Digital Commerce, DeFi Education Fund, Chamber of Progress, Consumer Technology Association, venture firms, and academics.
– Coinbase argues that the transactions in question do not meet the definition of an investment contract and therefore do not violate securities law.
– The briefs cite the recent Supreme Court case West Virginia vs. the Environment Protection Agency, which held that regulatory agencies cannot exceed their mandate without Congressional approval.
– It is uncertain whether Congress will take swift action on broad crypto regulation, as the bills addressing market structure and stablecoin issues are yet to be taken up by the House.
– Senator Lummis’s brief highlights that lawmakers have introduced bills that recognize the limitations of the SEC’s jurisdiction in the crypto industry and the need for a holistic approach.
Hot Take
The filing of amicus briefs by prominent crypto lobbying organizations and Senator Lummis shows the growing concern within the crypto community regarding the SEC’s regulatory overreach. The briefs argue that the SEC should not have the authority to classify platforms like Coinbase as unregistered securities exchanges, brokers, and clearinghouses. This case has significant implications for the future of the crypto industry and the regulatory framework that will govern it. It remains to be seen how the court will rule and whether Congress will take action to clarify the SEC’s jurisdiction in the crypto space.
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