Pro-crypto lobby group Blockchain Association has filed an amicus brief in support of Coinbase in its legal battle with the US Securities and Exchange Commission (SEC).
The SEC is suing Coinbase for allegedly operating as an unregistered stock exchange, broker and clearing house.
The regulator claims that at least 13 crypto assets backed by the trading platform are being illegally offered as securities, but Coinbase argues that the digital assets are not investment contracts and therefore should not be considered securities.
In a submit filed in U.S. District Court for the Southern District of New York on Aug. 11, the Blockchain Association says it supports Coinbase’s argument, adding that Congress has not granted the SEC regulatory authority over the digital asset industry.
Amici fully agrees with these arguments and submits this letter to emphasize that the burgeoning digital asset market is an important development and that the top questions doctrine overrides the SEC’s attempt to usurp vast powers that Congress has never clearly granted it.”
The Blockchain Association says the SEC is claiming authority not granted by the legislative process when it uses its own interpretation of investment contracts and certainties.
“The SEC is now seeking to short-circuit the legislative process and seize power to resolve for itself issues of enormous economic and political importance…
The SEC’s attempt to seize that expanded authority for itself without clear congressional authorization, and contrary to its own previous statements about the scope of its powers, must be rejected.
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