US Senator Backs Coinbase in Amicus Brief: Calls for SEC Lawsuit Dismissal Against Exchange

A US Senator Advocating Cryptocurrency Support Files Amicus Brief for Coinbase, Urging Court Dismissal of SEC Lawsuit Against the Crypto Exchange.

In Recent Filing, Senator Cynthia Lummis Urges Dismissal of SEC Lawsuit Against Coinbase Over Alleged Unregistered Securities Sales

Republican Senator Cynthia Lummis of Wyoming has submitted a new court filing, calling for the dismissal of the Securities and Exchange Commission's (SEC) lawsuit against Coinbase. The suit alleges that the leading US cryptocurrency exchange conducted sales of unregistered securities.

Lummis contends that the SEC's enforcement actions diverge from legislative efforts aimed at establishing a well-defined regulatory framework for the cryptocurrency industry.

She states, "Congress prioritizes the regulation of crypto assets, with growing momentum toward enacting a balanced framework that fosters innovation while ensuring consumer protection. Deliberations are ongoing in both the House and Senate regarding the classification and regulation of this emerging class of crypto assets, as evident from numerous hearings…

In contrast, the SEC's broad classification of almost all crypto assets as securities, subjecting them to existing legal requirements, contradicts approaches taken by other jurisdictions. The SEC's capacity to develop a comprehensive regulatory framework for crypto assets, particularly through legal enforcement, is questionable."

Lummis strongly supports Coinbase's motion, filed earlier this month, to dismiss the case.

"This Court should reject the SEC's unprecedented attempt to regulate secondary markets for crypto assets based on the assertion that crypto assets equate to securities. Congress should be entrusted to establish an appropriate regulatory framework. Therefore, Coinbase's motion for judgment on the pleadings deserves approval."

The SEC initiated legal action against Coinbase in June, asserting that, aside from Bitcoin (BTC), the crypto assets offered on the exchange's platforms are all deemed securities.

Aug 14, 2023