A pro-crypto US senator files an amicus brief in favor of Coinbase, saying the court should dismiss the US Securities and Exchange (SEC) lawsuit against the crypto exchange.
In a new lawsuit, Wyoming Republican Senator Cynthia Lummis is asking the court to drop the SEC’s lawsuit against Coinbase alleging the largest U.S. crypto exchange sold unregistered securities.
According to Lummis, the SEC’s enforcement actions are “out of step” with lawmakers’ efforts to create a clear regulatory framework for the crypto industry.
“Crypto asset regulation is a Congressional priority and there is currently momentum toward the adoption of a balanced framework that promotes responsible innovation and protects consumers. Both the House and Senate are actively considering how the United States should classify and regulate this emerging class of crypto-assets, as evidenced by numerous hearings…
Meanwhile, the fact that the SEC treats virtually all crypto-assets as securities and subjects them to all requirements of existing securities laws conflicts with the approaches taken in other jurisdictions. The SEC is not up to the task of creating a holistic regulatory framework for crypto-assets, particularly through judicial enforcement action.
Lummis goes on to say that Coinbase’s motion to dismiss the case, which was filed earlier this month, should be granted.
“This court should reject the SEC’s new attempt to regulate secondary crypto-asset markets based on the theory that crypto-assets are securities, and defer it to Congress to establish a proper regulatory schedule. Coinbase’s motion for a verdict on the pleas should be granted.”
The SEC sued Coinbase in June after the regulator ruled that the crypto assets offered on the exchange’s platforms are all securities except Bitcoin (BTC).
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