The SEC started the year 2023 with a series of attacks against various cryptocurrency exchanges. Kraken, Binance and Coinbase paid the fees for this aggressive regulation the crypto industry. Except that attacking these companies is not child’s play. Behind, there is a whole community made up of private investors, institutions and elected politicians. To thwart the plans of the American regulator, Senator Cynthia Lummis stepped up to the plate.
The amicus curiae brief of Cynthia Lummis
Recent news regarding the progress of the Ripple vs. SEC case suggests that Coinbase should also be prepared for long and hard legal battles.
The United States Securities and Exchange Commission is not one to be beaten easily. She proved it by appealing following a partial victory for Ripple, the company behind XRP.
But, it is clear that crypto firms under attack don’t so easily throw in the towel.
” Senator Cynthia Lummis (R. WY) just filed an amicus curiae brief in favor of Coinbase targeting the SEC complaint dismissed.
Lummis is a co-author of the Lummis-Gillibrand Cryptocurrency Regulation Bill.
The memoir of Senator Lummis maintains that:
1- Congress did not grant the SEC the power to regulate crypto-assets.
2- Define the contours of the regulation of crypto-assets in this country is a job for Congress, not the SEC.
3- The SEC’s assertion that almost all crypto-assets are securities’exceeds the authority of the SEC, impinges on the legislative power of Congress, and impedes the separation of powers.’
And putting a new twist on the phrase ‘regulation by enforcement’, Senator Lummis states that ‘the SEC cannot legislate by application‘.
Excellent work by the lawyers at Jenner & Block.
That is well said. Good game. »
Cointelegraph pointed out that the filing of this amicus curiae brief bears witness to the Cynthia Lummis’ support for Coinbase. And this despite the absence of a direct involvement in the current case.
We are not unaware that the senator from Wyoming is a fervent defender of cryptocurrencies. She already confessed hold a wallet secured with bitcoins and do not hesitate to buy it.
All behind Coinbase!
Ripple was entitled to amicus curiae brief submissions from its supporters, including the Brian Armstrong exchange, when the war on the SEC was raging. Coinbase, which did not hesitate to create the movement “Stand with Crypto” to better protect the industry, also deserves such support.
So, aside from Senator Cynthia Lummis, CoinDesk also identified several “lobbyists” of the crypto sector who requested the dismissal of the lawsuits against Coinbase. Among them are:
- the Crypto Council for Innovation;
- the Blockchain Association;
- the Chamber of Digital Commerce;
- the Consumer Tech Association;
- and the DeFi Education Found.
All united against an increasingly aggressive SEC towards crypto exchangesas well as some altcoins classified as “securities”.
In this Twitter thread, Marisa Tashman Coppel, of the Blockchain Association, highlights some actions of the SEC which are similar to overzealousness.
Enough to reframe Gary Gensler and his entire team who, for the moment, continue to trample on the flowerbeds of the CFTC. And unfortunately those of Congress too, as Senator Cynthia Lummis suggests.
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