Securities regulators slam Coinbase's defense against SEC, say crypto isn't special
In a significant development, around 5,000 Coinbase users have rallied to participate as potential amicus curiae in the intense legal skirmish with the U.S. Securities and Exchange Commission (SEC). This information emerged from an update by pro-XRP attorney John Deaton on the social platform X on October 27.
These users aim to provide critical information and perspectives, hoping to influence the outcome in favor of the cryptocurrency exchange. The concept of amicus curiae, or “friend of the court,” plays a pivotal role in legal proceedings, allowing individuals outside the immediate litigation to supply expertise and insight to the court.
Deaton, an advocate familiar with such interventions, plans to file the brief if the case escalates to the District Court or during an appeal process. His strategy mirrors past efforts, where he successfully represented 75,000 XRP holders in Ripple‘s legal tussle with the SEC. Moreover, he spearheaded similar initiatives supporting Ethereum holders in a case involving the New York Attorney General and KuCoin.
Coinbase’s ongoing struggle against the SEC has garnered backing from diverse corners of the crypto world. Supporters include Senator Cynthia Lummis, a group of legal academics, and the influential Chamber of Digital Commerce.
As the case advances, Judge Katherine Polk Failla’s recent nod for an oral argument marks the next critical juncture. This stage, set for January 17, 2024, will see Coinbase defend its motion for judgment on the pleadings. The crypto exchange contends that the SEC’s classifying its cryptocurrencies as securities is a regulatory overreach, challenging the motion on legal grounds.
Paul Grewal, the Chief Legal Officer at Coinbase, welcomed the upcoming court session. He confirmed the company’s preparedness to address the court’s concerns comprehensively. The legal team remains firm, seeking a case dismissal and arguing against the SEC’s approach to crypto regulation.
This case is a notable instance where community support coalesces around a common cause, highlighting the communal resilience within the cryptocurrency sector. As legal proceedings continue, the implications of this battle could set significant precedents for the regulatory landscape of digital currencies.
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