Coinbases SEC Complaint Draws Allies Describing US Regulator As Crypto Bully

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Crypto insiders are linking to Coinbase (COIN) as the company seeks to blast the U.S. Securities and Exchange Commissions (SEC) and registers a crusade targeting the digital asset industry.

In a series of amicus briefs filed this week, several crypto groups join the US-based exchange as they collectively insist that the SEC is deliberately destroying the fledgling industry by insisting that it There is nothing distinct or special about crypto that warrants different treatment under securities laws. . The United States Court of Appeals for the Third Circuit on Thursday granted the various groups’ motion to join the case.

The digital asset industry is stuck in limbo, simultaneously being asked to come in and register, but having no effective way to do so, said a brief from Paradigm, a firm that invests in asset businesses. digital. It’s no surprise that the SEC’s actions crippled a fledgling industry and confused countless companies unable to comply with the SEC’s view of the law or challenge that view in court. .

Filings, a means by which outside parties can offer support for legal arguments, are building up support on Coinbases’ request more than two weeks ago to force the SEC to respond to an earlier 2022 petition asking the agency to provide rules clarifying the place of cryptos in securities regulation. While SEC Chairman Gary Gensler has made it clear that the agency has no plans to adapt specific rules for crypto, the regulator must respond by May 13 to the legal dispute.

Meanwhile, even the US Chamber of Commerce, the broadest organization lobbying on behalf of US business interests, has criticized the SEC’s behavior.

No one knows for sure which digital assets, if any, are securities under federal law, the House argued in its brief. It’s not a small question. This has immense implications for everyone involved in the $1 trillion digital asset economy, and it is the threshold regulatory question from which all others stem.

The story continues

The Crypto Council for Innovation, an industry advocacy group, also argues that the SEC’s aggressive stance toward those seeking compliance hurts investors’ ability to tell good organizations from bad ones, because they’re all painted. with the same brush by the SEC.

The legal fight between the SEC and Coinbase, one of many the regulator is waging in the crypto space, may soon be amplified. The agency warned Coinbase that it would be the target of legal action for violating securities laws.

SEC Chairman Gensler continues to reiterate his invitation to crypto trading platforms and his token efforts to enter the agency and register properly. He released another video last month that warned investors against crypto, accusing much of the industry of openly flouting securities laws.

Intensifying lawsuits and lawsuits from the SEC make it increasingly likely that court rulings will shape the course of U.S. crypto oversight

UPDATE (May 11, 2023 17:54 UTC): Adds federal court decision to accept briefs.

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