Many US cryptocurrency companies and industry participants have rallied in support of Coinbase's legal battle against the Securities and Exchange Commission (SEC). These companies highlight broader concerns about the regulatory uncertainty plaguing the digital asset space. The move comes after Coinbase, one of the popular U.S. cryptocurrency exchanges, accepted the SEC's denial of a rulemaking motion.
Supports Texas Blockchain, Paradigm and other petitions against Coinbase
Coinbase's petition asked for clarification on how securities laws apply to digital assets. Among the notable companies that have announced their support for Coinbase is high-tech investment firm Paradigm Operations LP. With a strong focus on regulatory clarity, Paradigm's court brief highlighted the negative effects of the SEC's opaque stance on digital assets.
They echoed Coinbase's view that a lack of clear rules and guidance stifles innovation and leaves entrepreneurs and investors grappling with uncertainty around legal requirements. Additionally, Legit.Exchange, a Texas-based digital asset trading platform, has also joined the fray. Legit.Exchange sought to avoid classification as a stock exchange in his court filings with the SEC.
Additionally, Legit.Exchange highlighted the regulatory ambiguity created by SEC enforcement actions against platforms like Coinbase. Furthermore, it argued that such uncertainties hinder market development and undermine investor confidence.
Additionally, the U.S. Chamber of Commerce, which represents a vast number of companies from a variety of sectors, has expressed support for Coinbase's cause. The Chamber emphasized the need for regulatory clarity and criticized the SEC's approach. They believe that SEC regulatory ambiguity hinders investor protection and capital formation.
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CLO Paul Grewal expresses his gratitude
Additionally, Satoshi Action Fund and Texas Blockchain have teamed up to file amicus briefs with the SEC. They highlighted the impact of regulatory uncertainty in the digital asset industry on broader society. Additionally, he emphasized the importance of federal law and a transparent rulemaking process to foster innovation, promote economic growth, and address environmental issues.
Additionally, the Crypto Council for Innovation (CCI), a coalition of industry leaders advocating for responsible global regulation of digital assets, condemns the SEC's enforcement-focused approach. CCI opposed the SEC's denial of Coinbase's petition. They emphasized the need for clear regulatory guidance for the industry's long-term success and competitiveness on the global stage.
In response to the outpouring of support, Coinbase Chief Legal Officer Paul Grewal expressed his gratitude. “We appreciate the numerous amicus briefs filed in the Third Circuit today opposing the SEC's denial of our rulemaking application,” he wrote to X.
Coinbase CLO further reflected the sense of urgency, emphasizing the importance of the SEC providing clear rules and guidance regarding digital assets. He also thanked Paradigm, Texas Blockchain, Satoshi Action Fund, Legit Exchange, the Chamber of Commerce, and CCI for sharing their views with the court.
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