- Senator Cynthia Lummis filed an amicus brief in support of Coinbase.
- Coinbase moved to junk the SEC lawsuit over various grounds.
- The document stated that SEC’s overreach was evident in the lawsuit.
Embattled crypto exchange Coinbase has gotten a legislator as a backer regarding its ongoing legal battle with the US Securities and Exchange Commission (SEC). This time, it is none other than Senator Cynthia Lummis.
Specifically, Senator Lummis filed an amicus brief that supports Coinbase’s motion to throw the SEC lawsuit to the bin. The document can be found here, although X App user and crypto supporter MetaLawMan summarized the amicus brief.
In summary, the document argued that the US Congress never granted — at least, not yet — the SEC any authority to regulate crypto assets. Defining what is legal and what is not, as well as crafting a crypto regulation, is the job of the Congress and not the SEC.
Another scathing argument is that the SEC’s claim that most cryptocurrencies are securities is above its authority, “encroaches on Congress’s lawmaking, and contravenes the separation of powers,” the document stated.
Senator Cynthia Lummis (R. WY) just filed an Amicus Brief supporting @Coinbase's motion to dismiss the SEC's complaint.@SenLummis is Co-Sponsor of the Lummis-Gillibrand crypto regulation bill.
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Sen. Lummis' brief argues that:
1. Congress has not granted the SEC authority to…google news — MetaLawMan (@MetaLawMan) August 11, 2023
The SEC filed a lawsuit against Coinbase, alleging that the exchange has been facilitating the trading of a couple of dozen of cryptocurrencies that it deems to be securities. Most of these cryptocurrencies are based on Proof of Stake (PoS). In contrast, Proof of Work (PoW) coins like Bitcoin, Litecoin, and Dogecoin were exempt from that allegation.
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