New York, August 18– Six legal experts and Senator Cynthia Lummis filed an amicus brief on August 11 supporting Coinbase in the company’s ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
The brief, filed in the U.S. District Court for the Southern District of New York, argues that the SEC’s lawsuit is “overreaching” and that it could have a “chilling effect” on innovation in the cryptocurrency space.
The experts who filed the brief are:
Stephen Bainbridge, University of California, Los Angeles
Tamar Frankel, Boston University School of Law
Sean Griffith, Fordham University School of Law
Lawrence Hamermesh, Widener University Delaware Law School
Matthew Henderson, University of Chicago Law School
Jonathan Macey, Yale Law School
The brief argues that the SEC’s definition of a ‘security’ is too broad and that it would encompass many products that are not securities, such as Bitcoin and Ethereum.
The brief also argues that the SEC’s lawsuit is inconsistent with the Howey Test, a test that is used to determine whether a product is a security.
Senator Lummis, a Republican from Wyoming is a well-known supporter of the cryptocurrency industry. In her brief, Senator Lummis argued that the SEC’s lawsuit is “an overreach of the agency’s authority” and “threatens to stifle innovation in the cryptocurrency industry.”
The SEC has not yet filed a response to the amicus briefs. The case is expected to be taken up for a hearing on September 12.
The outcome of the case could significantly impact the regulation of cryptocurrencies in the United States. If the SEC is successful in its lawsuit, it could set a precedent that would make it more difficult for cryptocurrency companies to operate in the United States. However, if Coinbase is successful, it could pave the way for more innovation in the cryptocurrency space.
