• Coinbase is suing the SEC to clarify what digital assets constitute securities.
• The U.S. Chamber of Commerce has filed an amicus brief in support of Coinbase, arguing that the SEC’s delayed response and lack of clear guidelines are unlawful and stifling economic growth and innovation.
• The court gave the SEC ten days to respond to Coinbase’s petition, which could have broader implications beyond the case itself.
Coinbase Suing SEC
In April, Coinbase took a bold move by suing the U.S. Securities and Exchange Commission (SEC) in hopes of clearing ambiguity surrounding crypto regulations in the United States that continues to push businesses abroad.
U.S. Chamber Of Commerce Supports Coinbase
The U.S Chamber of Commerce, which represents about 3 million businesses, has opted to support Coinbase in its lawsuit against the SEC per an amicus brief filed on Tuesday May 9th. In this legal document they argued that the SEC’s delayed response has stifled economic growth and innovation as well as hurt regulatory landscape for crypto . The organization also bashed campaign of regulation by enforcement absent of clear guidelines as “unlawful” saying „The SEC’s actions are not just harmful policy; they are unlawful; and the consequences of the SEC’s continued delay are severe for that reason too“.
Court Gives Ten Days To Respond To Petition
On May 4th , The court had given the Securities and Exchange Commission ten days to respond to Coinbase’s July 2022 petition to clarify what digital assets constitute securities . Experts had initially argued that there was still wriggle room for them to delay their response but with recent amicus briefs decrying their delay it may be difficult for them now with more effects than expected .
Securities Lawyer James “MetaLawMan“ Murphy asserted that this development could potentially force regulators‘ hand into issuing clearer guidance on cryptocurrencies while also aiding other similar cases such as those involving Ripple , Block .one , Telegram etc who were all sued by the regulator over alleged violation of federal securities laws . If a judge rules in favor if coinbase then some projects previously accused may get off scot-free or get refunds from paid penalties/settlements .
Coinbase taking a bold step by suing US Securities Exchange Commission over unclear regulations in US crypto space has been backed up by one of influential business organizations around world which could have significant implications beyond this case itself . It remains yet to be seen how this case pans out but it is sure set precedence on crypto regulations and will likely have major effects on other similar cases pending before regulator .