Wyoming Senator Cynthia Lummis has pledged her support for U.S. crypto exchange Coinbase by filing an amicus brief backing its motion to dismiss the Securities and Exchange Commission (SEC) complaint.
On August 11, Republican representative Cynthia Lummis submitted an amicus curiae brief to the United States District Court for the Southern District of New York.
Coinbase SEC Battle Rages On
An amicus curiae is an individual or organization that is not a party to a legal case. However, they are permitted to assist a court by offering information, expertise, or insight that has a bearing on the issues in the case.
Senator Lummis argued that Congress had not granted the SEC any authority to regulate or classify crypto assets. The brief contends the SEC is encroaching on Congress’s role by asserting broad authority over crypto markets and assets.
Defining the contours of crypto regulation in this country is a job for Congress and not the SEC, Senator Lummis argued.
Furthermore, the SEC’s position that crypto assets themselves are securities improperly expands the statutory definition of “security” beyond what Congress intended.
Moreover, the SEC claims that virtually all crypto assets are securities:
“Exceeds the SEC’s authority, encroaches on Congress’s lawmaking, and contravenes the separation of powers.”
The brief urges the court to reject the SEC’s novel interpretation of its authority and defer to Congress to enact proper crypto regulation.
Amicus briefs supporting Coinbase were also filed on August 11 by several crypto advocacy groups. These included the Blockchain Association, Crypto Council for Innovation, and the Chamber of Progress and Consumer Tech Association.
The SEC sued Coinbase in early June for acting as an unregistered broker and selling unregistered securities.
The firm filed a motion to dismiss the complaint on August 4. It argued that the SEC had violated due process and abused its discretion.
Regulation Procrastination
On Aug 11, Senator Lummis commented on PayPal’s recently announced stablecoin. She stated that it is “another sign that crypto assets are here to stay as part of the global financial system,” before adding:
“Now, Congress needs to secure America’s status as the unquestioned global leader in financial innovation by creating clear regulatory rules of the road.”
Earlier this week, former acting Comptroller of the Currency, Brian P. Brooks, urged Congress to speed up the prioritization of regulating stablecoins.
In July, Senators Cynthia Lummis and Kirsten Gillibrand updated their crypto regulation bill in an effort to accelerate the process.
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