Coinbase has received support from Senator Cynthia Lummis, who is well-known for her favorable view on cryptocurrencies. In response to a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Coinbase, Lummis has submitted an Amicus Brief asserting her stance.
The document aims to strengthen Coinbase’s position by highlighting the broader implications of the lawsuit. Representing Wyoming, Lummis argues in her filing with the U.S. District Court for the Southern District of New York that this particular lawsuit goes beyond a typical enforcement case.
In her filing with the U.S. District Court for the Southern District of New York on August 11th, Lummis, who represents Wyoming, argued that the SEC’s lawsuit goes beyond a typical enforcement case.
She believes it is an attempt to gain “primary influence” over the crypto industry during ongoing discussions about regulation and related matters in Congress and various agencies.
According to Lummis, this move by the SEC undermines the political process as most legislative proposals would grant such authority to other agencies. She contends that this approach violates the separation of powers and encroaches on Congress’s lawmaking abilities.
Coinbase Fights Back Against SEC Lawsuit
Coinbase submitted a motion to dismiss on August 4, asserting that the SEC had violated due process, abused its discretion, and deviated from its previous interpretations of securities laws. The exchange challenged the SEC’s jurisdiction over its operations.
Lummis backed Coinbase’s motion, questioning the SEC’s claim that almost all cryptocurrencies qualify as securities. Additionally, she criticized the agency’s enforcement-based regulatory approach, which she referred to as an attempt to shape legislation through enforcement efforts.
In her statement, she expressed concerns about the Securities and Exchange Commission’s (SEC) interpretation of securities laws. According to her, the SEC’s broad approach is inconsistent with the original intent of the Congress when granting regulatory authority to the SEC.
She also criticized the SEC for relying on enforcement actions instead of providing clear guidance to the crypto industry. Instead of pursuing lawsuits, she believes that the SEC should focus on offering proper direction.
Several organizations, alongside Lummis, have submitted an Amicus Brief in support of Coinbase’s motion to dismiss. On August 11th, the Blockchain Association, Crypto Council for Innovation, Chamber of Progress, and Consumer Tech Association jointly filed their support as well.
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