Crypto Council Backs Coinbase By Filing Amicus Brief Against SEC Over Regulatory Clarity
The post Crypto Council Backs Coinbase By Filing Amicus Brief Against SEC Over Regulatory Clarity appeared first on Coinpedia Fintech News
The Crypto Council for Innovation (CCI) has thrown its support behind Coinbase by filing an amicus brief against the Securities and Exchange Commission (SEC) on the 18th of March 2024. This move comes after the SEC’s denial of Coinbase’s rulemaking petition in December 2023, with Coinbase alleging arbitrary action on the part of the SEC.
1/ The @crypto_council just submitted an amicus brief in support of @coinbase challenging the SEC’s denial of its rulemaking petition.
TL;DR: The SEC’s pursuit of its flawed interpretation of securities laws through regulation by enforcement while refusing to engage in…
— Ji Kim (@_jikim) March 18, 2024
Coinbase Vs SEC Lawsuits
The legal dispute between Coinbase and the SEC traces back to July 2022 when Coinbase urged the SEC to engage in rulemaking to guide the digital assets industry. However, the SEC ignored this request, prompting Coinbase to file a mandamus proceeding to compel a response.
After further delays and pressure from the Third Circuit, the SEC ultimately denied Coinbase’s regulatory request without giving a clear reason. However, Coinbase challenged the denial, arguing that it is arbitrary, capricious, and in violation of the Administrative Procedure Act (APA).
CCI Challenging SEC’s Denial
In an amicus brief filed with the court, CCI outlines its concerns about the way the SEC regulates the digital asset industry. In particular, CCI criticizes the SEC’s reliance on regulation through enforcement, arguing that this approach lacks transparency and harms innovation.
CCI also points to a lack of substantive justification in the SEC’s denial of Coinbase’s regulatory request, saying it failed to meet the standards required by the APA.
Furthermore, the CCI argues that the SEC’s refusal to engage in substantive rulemaking creates a regulatory black hole, leaving industry participants without clear guidelines for compliance.
6/ CCI also highlights the fact that the SEC, in its order denying the rulemaking request, wrote a single sentence regarding the alleged “effectiveness” of the current system. This statement was devoid of any meaningful detail or reasoning. Again, such failure to engage is…
— Ji Kim (@_jikim) March 18, 2024
This, in turn, drives businesses to seek regulatory clarity abroad, undermining the United States’ position as a leader in the global digital assets financial system.
Support for Coinbase
The CCI’s support for Coinbase underscores the importance of regulatory clarity in the cryptocurrency space. As Coinbase continues to challenge the SEC’s stance, stakeholders across the region are closely watching developments that could determine the future of digital asset regulation in the United States.
Filed under: Bitcoin - @ March 19, 2024 8:22 am