Crypto Council Backs Coinbase in Legal Dispute Against SEC

Crypto Council for Innovation Backs Coinbase

The Crypto Council for Innovation (CCI) recently filed an amicus brief in support of Coinbase’s challenge against the Securities and Exchange Commission (SEC) denial of its rulemaking petition. This move by the CCI demonstrates a united front within the crypto ecosystem.

Understanding Amicus Briefs

Amicus curiae briefs, like the one filed by the CCI, provide legal arguments and recommendations to a court from individuals or groups not directly involved in a case. The CCI, composed of members from various sectors of the crypto industry, aims to promote responsible global regulation.

Issues with SEC’s Approach

Coinbase’s argument against the SEC’s denial of its petition highlights concerns about arbitrary actions by the regulatory body. The SEC’s enforcement-focused approach without engaging in formal rulemaking has raised questions about adherence to the Administrative Procedure Act (APA).

According to Ji Kim, General Counsel and Head of Global Policy at the CCI, the SEC’s enforcement policy lacks transparency and fails to consider input from relevant stakeholders in the digital assets space.

Coinbase Lawsuit and CCI’s Stance

In response to the SEC’s actions, Coinbase initiated a lawsuit seeking clear guidelines for the cryptocurrency sector. The CCI supports Coinbase’s stance, emphasizing the need for regulatory clarity to foster industry growth and compliance.

Challenges Faced by the Crypto Industry

The CCI criticizes the SEC for perpetuating a regulatory environment that hinders innovation and drives businesses to seek opportunities in more supportive jurisdictions. This trend could impact the U.S.’s position in the global digital assets landscape.

Kim notes that the SEC’s lack of substantive rulemaking and vague justifications for its decisions create uncertainty and hinder the industry’s progress.

Promises Unfulfilled

The CCI highlights the disparity between the SEC’s promises and actions, particularly in the context of digital assets. The failure to provide a conducive regulatory framework could limit consumer access to the benefits of digital assets and impede industry growth.

Overall, the CCI’s support for Coinbase underscores the importance of clear regulations and collaborative policymaking in the crypto space.