• The Blockchain Association has filed an amicus brief in support of Coinbase in its legal battle with the U.S. Securities and Exchange Commission (SEC).
• The SEC is suing Coinbase for allegedly operating as an unregistered securities exchange, broker and clearing agency.
• In a filing submitted to the U.S. District Court for the Southern District of New York, the Blockchain Association argues that Congress did not grant the SEC regulatory authority over digital assets industry and that it is short-circuiting legislative process by using its own interpretation of investment contracts and securities.
Blockchain Association Supports Coinbase
The pro-crypto lobbying group Blockchain Association has filed an amicus brief in support of Coinbase in its legal battle with the U.S. Securities and Exchange Commission (SEC). The SEC is suing Coinbase for allegedly operating as an unregistered securities exchange, broker and clearing agency, claiming that at least 13 crypto assets supported by the trading platform are illegally being offered as securities.
Coinbase Argues Digital Assets Not Investment Contracts
Coinbase argues that these digital assets are not investment contracts and therefore should not be deemed as securities. In a filing submitted to the U.S. District Court for the Southern District of New York on August 11th, the Blockchain Association says it supports Coinbase’s argument, adding that Congress did not grant the SEC regulatory authority over this digital assets industry.
SEC Trying to Short Circuit Legislative Process
The Blockchain Association also claims that the SEC is asserting authority not granted through legislative process when it uses its own interpretation of investment contracts and securities without clear congressional authorization contrary to its past representations about scope of its powers. They argue that this attempt must be rejected in order to maintain proper separation between executive branch’s enforcement powers and legislative process which grants those powers via statutes or regulations passed by Congress or other applicable bodies such as state legislatures or local governing entities depending on jurisdiction involved in dispute or controversy at hand .
Amicus Brief Filing Details
In their amicus brief filing, they emphasize how rapidly expanding market in digital assets is major development while major questions doctrine forecloses SEC’s effort to arrogate itself massive powers never clearly granted it by Congress or other applicable bodies mentioned earlier . This brief serves as reminder about need for proper separation between executive branch’s enforcement power & legislative process granting them via statutes/regulations passed by congress or other applicable bodies .
Conclusion
Ultimately , this case highlights importance of ensuring proper balance between government regulation & private sector innovation around emerging technologies like cryptocurrency & blockchain . By filing this amicus brief , Blockchain Association hopes to ensure legal certainty regarding these issues so public can trust integrity & stability of financial markets going forward .