Support Mounts for Coinbase as Industry Leaders Call on SEC to Draft Clear Crypto Regulations

cryptonews.com:

Several supporters have joined Coinbase Inc. in its legal battle against the U.S. Securities and Exchange Commission (SEC) to urge the agency to reconsider its stance on crafting specific crypto regulations for the industry.

Notable backers, including Paradigm, the Crypto Council for Innovation, and others, have submitted amicus briefs to the circuit court, bolstering Coinbase’s position.

These amicus briefs were filed to support Coinbase’s appeal, which stemmed from a petition the crypto exchange filed in July 2022, urging the SEC to establish rules for tokens classified as securities. The commission rejected the petition in December 2023, approximately six months after initiating an enforcement action against Coinbase for alleged securities law violations. Coinbase appealed the decision, leading to the recent submission of amicus briefs.

In filings submitted on March 18 to the Third Circuit Court of Appeals, organizations such as the Crypto Council for Innovation (CCI), Satoshi Action Fund, Texas Blockchain Council, Paradigm, Lejilex, and the U.S. Chamber of Commerce argued that the SEC’s lack of clear guidelines creates uncertainty for market participants in the United States. They emphasized that without clear regulatory frameworks, companies may consider relocating out of the country.

The CCI’s brief criticized the SEC’s denial of Coinbase’s petition, stating that it undermines basic principles of fairness and harms consumers and innovators. Similarly, the U.S. Chamber of Commerce noted the risks of the SEC’s failure to provide clarity for the crypto industry, citing it as a case study in refusing to adapt regulation to new circumstances.

The joint filing from the Satoshi Action Fund and Texas Blockchain Council