Several advocacy groups have submitted amicus briefs in support of Coinbase’s appeal, urging the United States Securities and Exchange Commission (SEC) to establish clear regulations for the cryptocurrency industry.
The Crypto Council for Innovation (CCI), Satoshi Action Fund, Texas Blockchain Council, Paradigm investment firm, Lejilex digital asset company, and the U.S. Chamber of Commerce all filed separate briefs with the Third Circuit Court of Appeals on March 18. They argued that the SEC’s lack of clear guidelines for market participants in the United States hindered their ability to operate successfully. Many of the filings emphasized that without clear regulations, companies would be more inclined to relocate out of the country.
In a joint filing from the Satoshi Action Fund and Texas Blockchain Council, they stated, “The uncertainty and paralysis caused by the SEC could lead digital asset companies to completely leave the United States. The necessity for clear regulations, with proper notice based on congressional authority, is particularly crucial when the SEC seeks to impose adverse consequences and liability on the digital asset industry for past actions that were taken in good faith reliance on the SEC’s pronouncements.”
Coinbase filed a petition in July 2022, requesting the SEC to establish rules for tokens it deemed as securities under its jurisdiction. In December 2023, the commission denied the petition and initiated an enforcement action against Coinbase for alleged violations of securities laws. Coinbase appealed the decision, leading to the recent submission of amicus briefs.
The amicus briefs supported Coinbase’s appeal and criticized the SEC’s denial of the petition. They argued that the commission’s decisions disregarded fundamental principles of fairness, undermined trust in domestic markets, and would continue to harm consumers and innovators.
The U.S. Chamber of Commerce added its support, stating that the SEC’s denial of Coinbase’s petition was concerning.
The timeline for the appellate court’s decision on the Coinbase case is uncertain. The SEC has already initiated enforcement actions against other cryptocurrency firms, including Binance, Kraken, and Ripple. On March 18, a U.S. district court imposed sanctions on the SEC for acting in bad faith in a lawsuit against Debt Box, raising concerns about the commission’s conduct in other cases.
Coinbase remains optimistic about its appeal, with MetaLawMan, X Hall of Flame, predicting their victory.