In a significant turn of events in the legal battle between the U.S. Securities and Exchange Commission (SEC) and Coinbase, the SEC has reached out to multiple securities and legal entities, seeking their support through amicus curiae briefs. This move comes after Judge Analisa Torres ruled against the SEC’s motion to file an interlocutory appeal in the XRP lawsuit.
Supports To Save SEC
The SEC has garnered support from various organizations to bolster its case against Coinbase. These organizations include the American Securities Administrators Association (NASAA), the New Finance Institute (NFI), and a group of Administrative Law Scholars.
Their involvement could strengthen the SEC’s stance in the ongoing legal battle and convince the court to deny Coinbase’s motion to dismiss.
TradFi grey hairs file Amicus Curiae on behalf *drum roll* 🥁 the SEC, in SEC vs. Coinbasehttps://t.co/ukeHcfcX8B
NASAA landing page screenshot and story attached. PROTECT. pic.twitter.com/DczmmRVlm5
— Mikko Ohtamaa (@moo9000) October 10, 2023
Read Also: Pro-XRP Lawyer and Coinbase CLO Believe SEC’s Interlocutory Appeal Is Destined for Rejection
NASAA Backs SEC
NASAA has filed an amicus brief supporting the SEC, presenting several arguments and urging the court to reject Coinbase’s motion for judgment on the pleadings. NASAA’s arguments include the broad definition of “security” set forth by Congress to effectively regulate investments in all forms, asserting that digital assets mentioned in SEC’s enforcement actions fall under securities laws.
NASAA also contends that the Howey test, a legal test used to determine whether an asset qualifies as an investment contract, does not require formal contractual undertakings to exist. The organization further alleges that Coinbase’s staking program constitutes an investment contract.
NFI’s Perspective
The New Finance Institute (NFI) has also filed an amicus brief supporting the SEC’s position, emphasizing that the SEC has full authority to regulate the cryptocurrency industry. NFI argues that “investing” and “contract” are not prerequisites for identifying an investment contract and urges the court to deny Coinbase’s motion for judgment on the pleadings.
Administrative Law Scholars Weigh In
In addition to NASAA and NFI, Administrative Law Scholars Professors Todd Phillips and Beau Baumann have filed amicus briefs supporting the SEC. Their involvement adds further weight to the SEC’s argument to deny Coinbase’s motion for judgment on the pleadings.
Coinbase’s Defense
Coinbase, on the other hand, has been actively contesting the SEC’s jurisdiction over the cryptocurrency industry. The company contends that the SEC’s involvement interferes with Congress’s efforts to establish a regulatory framework for the crypto industry.
The ongoing legal battle between the SEC and Coinbase, just like the XRP lawsuit, remains a focal point in the cryptocurrency and blockchain industry. CEO Brian Armstrong recently shared his belief that the recent Ripple victory is important for the Coinbase lawsuit, and it will be interesting to see how the case plays out.
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