Support for SEC Grows in Lawsuit Against Coinbase
The US Securities and Exchange Commission (SEC) is receiving support from other securities regulators in its lawsuit against cryptocurrency exchange Coinbase. Two amicus briefs were filed on Tuesday, backing the agency’s argument that it should have oversight over the industry.
SEC’s Case Against Coinbase Intensifies
The SEC’s battle with Coinbase is escalating as the crypto exchange faces another hurdle in its fight against the securities agency. US state authorities and legal experts have joined the SEC in arguing that Coinbase operated as an unregistered exchange. The SEC claims that the exchange acted as an unregistered securities exchange, broker, and clearing house, offering unregistered securities. The agency’s main focus is on Coinbase’s staking program and various digital assets traded on its platform, which it considers to be “investment contracts” falling under its jurisdiction.
Former SEC Officials Joining In
The North American Securities Administrators Association (NASAA), composed of 68 members including securities regulators from all US states, has submitted arguments supporting the SEC’s legal position. It believes that digital assets should not receive special treatment and should be subject to traditional securities law.
“Major Questions Doctrine is Irrelevant”
Todd Phillips of Georgia State University and Beau Baumann of Yale Law School filed a second amicus brief stating that the “major questions doctrine” does not apply to this case. They argue that the SEC’s action against Coinbase is specific to enforcement against a particular company and not quasi-legislative rulemaking.
Hot Take: Growing Support for SEC Could Impact Future Regulations
The increasing support for the SEC in its lawsuit against Coinbase could have significant implications for future regulatory approaches to digital assets in the US. With state authorities, legal experts, and former SEC officials backing the agency’s position, it appears that traditional securities law should apply to the crypto industry. This case will shape how cryptocurrencies are regulated and could set a precedent for other exchanges and digital asset platforms.
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