In a pivotal development in the ongoing legal dispute between the U.S. Securities and Exchange Commission (SEC) and Coinbase, the SEC has made a noteworthy move by approaching various securities and legal organizations, soliciting their backing in the form of amicus curiae briefs. This strategic maneuver follows a significant setback for the SEC when Judge Analisa Torres denied the SEC’s motion to file an interlocutory appeal in the XRP lawsuit.
Backing for SEC
The SEC has received backing from several groups like the NASAA, NFI, and a team of Administrative Law Scholars. This support may help the SEC’s position in the legal dispute and make it more likely for the court to reject 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
SEC Receives NASAA’s Support
NASAA has submitted a legal document supporting the SEC. They’re making a few points and urging the court to reject Coinbase’s request for a judgment based solely on the initial statements in the case.
NASAA argues that the definition of “security” made by Congress is very broad, allowing the SEC to regulate all types of investments, including the digital assets involved in the SEC’s legal actions.
They also say that the Howey test, which helps determine if something is an investment contract, doesn’t always require a formal agreement. NASAA claims that Coinbase’s staking program can be seen as an investment contract.
The New Finance Institute (NFI) has joined in by submitting a legal document that backs the SEC’s side. They stress that the SEC has the power to oversee the cryptocurrency sector. NFI states that you don’t need to have “investing” and a “contract” as strict requirements for recognizing an investment contract. They want the court to reject Coinbase’s request for a judgment based solely on the initial statements in the case.
Administrative Law Scholars’ Opinion
Apart from NASAA and NFI, Professors Todd Phillips and Beau Baumann, who specialize in administrative law, have submitted legal documents supporting the SEC. This strengthens the SEC’s case and makes it more likely for the court to reject Coinbase’s request for a judgment based solely on the initial statements in the case.
Coinbase’s Legal Defense
Coinbase is fighting against the SEC’s authority over the cryptocurrency sector. They argue that the SEC’s actions are getting in the way of Congress’s attempts to create rules for the crypto industry.
This legal showdown between the SEC and Coinbase, much like the XRP case, is a big deal in the cryptocurrency and blockchain world. CEO Brian Armstrong thinks that the outcome of the recent Ripple case is significant for Coinbase’s lawsuit, and it’ll be intriguing to see how the case develops.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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