SEC Gains Amicus Curiae Support Against Coinbase in Legal Clash

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The U.S. SEC is making significant moves against both Coinbase and Ripple. While Ripple seems beyond immediate reach, the SEC focuses on Coinbase. They are actively seeking support from industry heavyweights in their case against the exchange. Following a failed attempt to convince a Judge to file an interlocutory appeal in the Ripple lawsuit, the SEC brought multiple amicus curiae against Coinbase. 

Multiple Amicus Curiae: SEC’s Dying Bet

In the ongoing U.S. Securities and Exchange Commission v. Coinbase lawsuit, the SEC has enlisted various securities and legal entities to file amicus curiae against Coinbase. The American Securities Administrators Association (NASAA), New Finance Institute, and Administrative Law Scholars are all siding with the U.S. SEC.

Having faced a setback in the Ripple lawsuit with Judge Analisa Torres, the U.S. Securities and Exchange Commission (SEC) is now working to bolster its position in the Coinbase lawsuit. The North American Securities Administrators Association (NASAA) has submitted an amicus brief, urging the court to reject Coinbase’s motion. Their arguments range from Congress’s broad definition of “security” for effective investment regulation to the assertion that Coinbase’s staking program qualifies as an investment contract.

The New Finance Institute (NFI) has also supported the SEC, emphasizing that neither “investing” nor “contract” are prerequisites for identifying an “Investment Contract.” They argue that the SEC has the authority to regulate crypto and request the court to deny Coinbase’s motion. Additionally, Administrative Law Scholars Professors Todd Phillips and Beau Baumann have filed amicus briefs supporting the SEC, urging the court to deny Coinbase’s motion. 

Coinbase’s Stance

On the opposing side, After John Deaton managed to get 1,500 users to support the case, it is evident that some experienced lawyers fraternity backs Coinbase. Currently, Coinbase enjoys the support of Republican Senator Cynthia Lummis, who, along with others, has filed an Amicus Brief urging the Judge to dismiss the case. Coinbase has countered these claims, asserting that the SEC lacks jurisdiction over the crypto industry and its actions go beyond the regulatory framework.

Analyst Rebuffs Coinbase’s Dubious Claims

Ali Martinez, a famous Crypto expert, took a sharp jab at Coinbase’s portrayal of the “digital asset industry” as a major player in the American economy, deeming it a dubious claim. He argued that, in reality, most digital assets are primarily used for speculative purposes and lack broad practical applications, such as being widely accepted for payments or satisfying government obligations like taxes. 

“The Court should decline to treat digital assets as somehow special.”

This challenges Coinbase’s assertion about the industry’s significant role in economic and political contexts. It’s a heated back-and-forth in the ongoing legal saga!