A pro-crypto US Senator is filing an amicus brief in favor of Coinbase, saying that the court should discard the U.S. Securities and Exchange’s (SEC) lawsuit against the crypto exchange.
In a new court filing, Republican Senator Cynthia Lummis of Wyoming asks the court to toss out the SEC’s lawsuit against Coinbase, which alleges that the top US crypto exchange sold unregistered securities.
According to Lummis, the SEC’s enforcement actions are “out of step” with the efforts of lawmakers to create a clear regulatory framework for the crypto industry.
“Crypto asset regulation is a Congressional priority and momentum currently exists toward the passage 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 reflected in numerous hearings…
Meanwhile, the SEC’s treating virtually all crypto assets as securities, and subjecting them to all the requirements of existing securities laws, is inconsistent with the approaches being taken in other jurisdictions. The SEC is not suited to the task of crafting a holistic regulatory framework for crypto assets, particularly through a 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 decline the SEC’s novel effort to regulate crypto asset secondary markets on the theory that crypto assets are securities, and defer to Congress to enact a proper regulatory scheme. Coinbase’s motion for judgment on the pleadings should be granted.”
The SEC sued Coinbase in June after the regulator deemed that the crypto assets offered on the exchange’s platforms are all securities except for Bitcoin (BTC).
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