<\/p>\n
Crypto-friendly Senator Cynthia Lummis has filed an Amicus Brief supporting Coinbase\u2019s motion to dismiss the U.S. Securities and Exchange Commission’s lawsuit against the firm. <\/p>\n
An Amicus Brief is a document filed in court by a party that is not directly involved with the related case. They are generally used to add supporting arguments to one side of the lawsuit, and emphasize how the case will have a broader impact beyond the involved parties. <\/p>\n
As per the Aug. 11 filing with the U.S. District Court for the Southern District of New York, Lummis stressed that \u201cthis is no run-of-the-mill enforcement case.\u201d <\/p>\n
The Senator asserted that with its lawsuit against Coinbase over alleged securities violations, the SEC is pushing to obtain \u201cprimary influence\u201d over the crypto sector at a time in which regulation and other factors are still \u201cunder active consideration by Congress and multiple agencies.\u201d <\/p>\n
\u201cThe SEC brings this enforcement action in the midst of debates in the halls of Congress and around the world about how crypto assets should be regulated. The Constitution empowers Congress\u2014not the SEC\u2014to legislate in such an area of profound economic and political significance.\u201d<\/p><\/blockquote>\n
\u201cAlthough the SEC seeks broad authority over crypto asset markets, most legislative proposals in Congress would instead grant much of that authority to other agencies. Unsatisfied, the SEC seeks to circumvent the political process to commandeer that authority for itself,\u201d she added. <\/p>\n
\nSenator Cynthia Lummis (R. WY) just filed an Amicus Brief supporting @Coinbase<\/a>‘s motion to dismiss the SEC’s complaint.@SenLummis<\/a> is Co-Sponsor of the Lummis-Gillibrand crypto regulation bill. <\/p>\n
Sen. Lummis’ brief argues that:<\/p>\n
1. Congress has not granted the SEC authority to\u2026<\/p>\n
\u2014 MetaLawMan (@MetaLawMan) August 11, 2023<\/a><\/p><\/blockquote>\n
Coinbase filed a motion to dismiss on Aug. 4, arguing that the SEC had \u201cviolated due process, abused its discretion, and abandoned its own earlier interpretations of the securities laws,\u201d by asserting authority over the exchange. <\/p>\n
In the court filing, Lummis went on to argue that the SEC has been overstepping its authority by claiming that nearly all crypto assets are securities, as she questioned the agency’s supposed regulation-by-enforcement approach, or what she described as an attempt to \u201clegislate by enforcement.\u201d <\/p>\n
\u201cThe SEC\u2019s attempt to shoehorn an entire new class of assets into the existing definition of a \u2018security,\u2019 and thereby add to the definition enumerated by Congress, exceeds the SEC\u2019s authority, encroaches on Congress\u2019s lawmaking, and contravenes the separation of powers. The SEC cannot legislate by enforcement.\u201d<\/p><\/blockquote>\n
Related: <\/em><\/strong>SEC decision on Bitcoin ETFs won\u2019t leave out Wall Street giants<\/em><\/strong><\/p>\n
Lummis is not alone in filing an Amicus Brief supporting Coinbase\u2019s motion to dismiss. <\/p>\n
On Aug. 11, crypto advocacy groups including the Blockchain Association, Crypto Council for Innovation, Chamber of Progress and Consumer Tech Association also submitted a joint filing. <\/p>\n
In an X (Twitter) thread announcing the move, the Blockchain Association\u2019s senior counsel Marisa Tashman echoed Lummis\u2019 comments that the \u201cSEC’s regulatory authority extends only to what Congress granted it,\u201d as she highlighted the risks of the SEC\u2019s approach to the sector: <\/p>\n
\u201cThe SEC’s interpretation threatens to sweep in many non-security assets – this can’t be what Congress intended when it granted the SEC authority to regulate securities.\u201d<\/p><\/blockquote>\n
\u201cThe SEC takes the position that nearly all digital assets sold on the secondary market are investment contracts under the federal securities laws. But, these transactions involve no ongoing contractual obligations. The SEC’s position is wrong,\u201d she added. <\/p>\n
\n1\/ @BlockchainAssn<\/a> and @crypto_council<\/a> filed a brief with @ProgressChamber<\/a> and @CTATech<\/a> supporting @coinbase<\/a> against the SEC. <\/p>\n
We explain why the major questions doctrine precludes @SECGov<\/a> from enforcing their interpretation of “investment contract.” https:\/\/t.co\/3JohzZK2lW pic.twitter.com\/SrghLHpfmA<\/a><\/p>\n
\u2014 Marisa Tashman Coppel (@MTCoppel) August 11, 2023<\/a><\/p><\/blockquote>\n
Magazine: <\/em><\/strong>Crypto regulation \u2014 Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/p>\n<\/div>\n