In the ongoing legal showdown between Coinbase, the leading cryptocurrency exchange, and the United States Securities Exchange Commission (SEC), the crypto community, digital asset organizations, and lawmakers have been rallying for the dismissal of the lawsuit. In a recent development, attorney Patrick V. Kennedy has stepped into the ring, seeking court approval to represent the Chamber of Digital Commerce as an amicus counsel in the case.
In a legal filing dated August 31, Patrick V. Kennedy, an attorney from McDermott Will & Emery, submitted a request for pro hac vice admission, indicating his intent to serve as counsel for the Chamber of Digital Commerce as an amicus. Alongside the Blockchain Association, the Chamber of Digital Commerce has played a pivotal amicus role in the ongoing Coinbase vs. SEC lawsuit. An ‘amicus’ is a party or individual not directly involved in the case but offers guidance and advice to the court.
The Chamber of Digital Commerce’s objective is to challenge the SEC’s attempts to regulate the digital asset sector through enforcement actions. Instead of providing clear guidelines and regulations, the SEC’s actions appear to contradict the efforts of both houses of the U.S. Congress, which are actively working on crafting cryptocurrency regulations. It’s essential to note that Congress has never explicitly granted the SEC the authority to oversee digital assets.
Meanwhile, executives at Coinbase, Brian Armstrong and Paul Grewal, remain optimistic about the lawsuit’s dismissal. Grewal argues that the SEC, led by Chair Gary Gensler, is trying to impede cryptocurrency innovation in the United States. Additionally, lawmakers have called for the dismissal of the lawsuit.
Recent rulings in the Ripple and Grayscale cases have underscored the SEC’s lack of clarity in distinguishing which cryptocurrencies should be classified as securities, revealing a deficiency in regulatory clarity. In these cases, the SEC faced setbacks against Ripple and, more recently, Grayscale, as it failed to provide adequate reasoning for denying Bitcoin ETF conversions.
Gary Gensler, the SEC Chair, advocates for classifying all cryptocurrencies, except Bitcoin, as securities and believes the SEC should have authority over the entire crypto industry. Nevertheless, the SEC’s credibility has been challenged due to seemingly inconsistent claims about cryptocurrencies. Furthermore, the SEC’s delays in deciding on seven Bitcoin ETFs may lead to financial losses for investors.
