Advocacy groups file amicus briefs encouraging SEC to write cryptocurrency rules
It has been urged by the Crypto Council for Innovation, Satoshi Action Fund, Texas Blockchain Council, Paradigm, Lejilex, and the US Chamber of Commerce that the SEC issue rules .Several advocacy groups have filed amicus papers in favour of Coinbase’s appeal, urging the United States Securities and Exchange Commission (SEC) to establish clear guidelines for the cryptocurrency business. Separate March 18 filings with the Third Circuit Court of Appeals by the Crypto Council for Innovation (CCI), Satoshi Action Fund, Texas Blockchain Council, investment firm Paradigm, digital asset startup Lejilex, and the U.S.
A joint filing from the Satoshi Action Fund and Texas Blockchain Council warned of the danger of digital asset companies leaving the United States altogether due to the uncertainty and paralysis created by the SEC. If the SEC wishes to impose ‘adverse consequences’ and ‘liability’ on the digital asset industry for past actions taken in good faith based on [the SEC’s] pronouncements, clear rules, with adequate notice rooted in congressional authority, are especially crucial. As part of a petition filed by Coinbase in July 2022, the amicus papers supported Coinbase’s appeal, which requested that the SEC adopt rules on tokens that it regarded as securities.
The commission denied the petition in December 2023, almost six months after filing an enforcement action against Coinbase for potential securities violations. Coinbase filed an appeal, which prompted the most recent wave of amicus papers.”The Commission’s recent denial of Coinbase’s petition for rulemaking to define digital asset securities and govern the regulation of digital securities markets is the latest in the long line of Commission decisions that flouts basic principles of fairness, diminishes faith in domestic markets, and will continue to harm consumers and innovators alike,” according to the CCI’s filing.
“The SEC’s failure to provide clarity for this important new industry offers a case study in the dangers of refusing to adapt regulation to new circumstances.” It’s unclear when the appeal court will rule on the Coinbase case. The commission has already filed enforcement charges against many cryptocurrency companies, including Binance, Coinbase, Kraken, and Ripple. On March 18, a United States district judge imposed sanctions on the SEC for engaging in “bad faith” in a lawsuit against Debt Box, raising concerns about the commission’s previous actions.
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