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Supporters Rally Behind Coinbase in Legal Battle with SEC
Several supporters have joined Coinbase Inc. in its legal battle against the U.S. Securities and Exchange Commission (SEC) to urge the agency to reconsider its stance on crafting specific crypto regulations for the industry. Notable backers, including Paradigm, the Crypto Council for Innovation, and others, have submitted amicus briefs to the circuit court, bolstering Coinbase’s position.
Amicus Briefs Support Coinbase’s Appeal for Clear SEC Guidelines
These amicus briefs were filed to support Coinbase’s appeal, which stemmed from a petition the crypto exchange filed in July 2022, urging the SEC to establish rules for tokens classified as securities. The commission rejected the petition in December 2023, approximately six months after initiating an enforcement action against Coinbase for alleged securities law violations. Coinbase appealed the decision, leading to the recent submission of amicus briefs.
- Organizations Supporting Coinbase’s Appeal:
- Crypto Council for Innovation (CCI)
- Satoshi Action Fund
- Texas Blockchain Council
- Paradigm
- Lejilex
- U.S. Chamber of Commerce
Arguments Presented in the Amicus Briefs
In filings submitted on March 18 to the Third Circuit Court of Appeals, these organizations argued that the SEC’s lack of clear guidelines creates uncertainty for market participants in the United States. They emphasized that without clear regulatory frameworks, companies may consider relocating out of the country.
The briefs criticized the SEC’s denial of Coinbase’s petition, stating that it undermines basic principles of fairness and harms consumers and innovators. They highlighted the need for clear rules rooted in congressional authority to provide predictability in compliance.
Regulatory Predictability Efforts Appreciated by Coinbase
Paul Grewal, Coinbase’s chief legal officer, expressed gratitude for the support received from various groups, including the U.S. Chamber of Commerce and the Texas Blockchain Council. Grewal stated the importance of regulatory predictability for compliance, noting that Coinbase’s petition for rulemaking seeks to establish clear guidelines for the industry.
While the timeline for the appellate court’s decision on the Coinbase case remains uncertain, recent enforcement actions by the SEC and concerns about the commission’s conduct in other cases have raised questions about the regulatory landscape for the cryptocurrency industry.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
