The ongoing legal battle between Coinbase and the United States Securities Exchange Commission (SEC) has gained support from the crypto community, digital asset organizations, and lawmakers. The Chamber of Digital Commerce, represented by attorney Patrick V. Kennedy, has requested court approval to serve as amicus counsel in the lawsuit.
New Attorney Seeks Court Approval
Attorney Patrick V. Kennedy recently filed a legal document on behalf of McDermott Will & Emery, seeking admission as amicus counsel for the Chamber of Digital Commerce. An 'amicus' is a party that is not directly involved in the case but provides advice to the court. The Chamber of Digital Commerce, along with the Blockchain Association, has played a significant role in support of Coinbase in its legal battle against the SEC.
Halting SEC's Efforts
The Chamber of Digital Commerce's main objective is to prevent the SEC from regulating the digital asset sector through enforcement actions. Instead, the chamber advocates for transparent guidelines and regulations. It argues that the SEC's actions contradict the intentions of the US Congress, which is actively working on cryptocurrency regulations. Notably, Congress has never explicitly granted the SEC the authority to oversee digital assets.
Optimism amid Lawsuit
Executives at Coinbase, Brian Armstrong and Paul Grewal, remain optimistic about the lawsuit and its potential dismissal. Grewal accuses the SEC and its Chair, Gary Gensler, of hindering cryptocurrency innovation in the US. Several lawmakers have also joined in calling for the dismissal of the lawsuit.
SEC's Lack of Clarity
The recent rulings in the Ripple and Grayscale cases have highlighted the SEC's lack of clarity in determining which cryptocurrencies should be classified as securities. The SEC faced defeats in both cases, failing to provide sufficient reasoning for rejecting Bitcoin ETF conversions. SEC Chair Gary Gensler believes that all cryptocurrencies, except Bitcoin, should be considered securities, and that the SEC should have authority over the entire crypto industry. However, the SEC's credibility has been called into question due to its seemingly illogical claims regarding cryptocurrencies. Additionally, the SEC's postponement of decisions on seven Bitcoin ETFs may result in financial losses for investors.
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