U.S. Senators, Cryptocurrency Advocacy Groups Ask Court To Dismiss SEC Lawsuit Against Coinbase
A number of crypto lobbying groups, U.S. Senator Cynthia Lummis (R-Wyo.), and a number of academics have joined forces to submit amicus (friend of the court) filings pleading with a federal court to dismiss the Securities and Exchange Commission (SEC) lawsuit brought against cryptocurrency exchange Coinbase.
They contend that the SEC has overstepped its authority by claiming that exchanges like Coinbase are also unregistered brokers, clearinghouses, and exchanges for trading unregistered securities like cryptocurrencies.
The amicus papers supported Coinbase's own arguments for the case's dismissal and were sent to Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York.
These parties include the Blockchain Association, Crypto Council for Innovation, Chamber of Digital Commerce, DeFi Education Fund, Chamber of Progress, Consumer Technology Association, as well as venture capital firms like Andreessen Horowitz and Paradigm, among others.
Senator Lummis' brief emphasized the fact that Congress has submitted proposals defining the SEC's jurisdiction and the Commodity Futures Trading Commission's (CFTC) prospective involvement, acknowledging that the cryptocurrency business does not exactly fit inside current securities regulations. The result of this legal dispute may significantly affect how cryptocurrencies and cryptocurrency exchanges are governed in the United States.
