In a recent development concerning the ongoing lawsuit between the United States Securities and Exchange Commission (SEC) and Coinbase exchange, a US Senator, Cynthia Lummis, reportedly filed for an amicus brief to support the exchange against the commission.
According to the report, the legal brawl between the two entities began a few weeks ago when the SEC filed a lawsuit against Coinbase exchange, accusing it of operating as an unregistered exchange, clearing, and broker platform. The news of the allegation spread across the global crypto industry, attracting several responses from spectators.
However, the Coinbase exchange reportedly reacted to the accusation on August 4 as it filed for a dismissal motion. In the motion, the exchange claimed that the commission was overstepping the boundary of its jurisdiction by filing a lawsuit against Coinbase.
In addition, the motion stated that the transactions conducted on the Coinbase platform are not and do not include contractual agreements to give future value mirroring the gains, assets, or revenue generated from a business. Also, the filing said that Coimbase’s transactions are commodity sales, with both parties ending their roles at the point when the digital asset is received in exchange for money.
On August 11, Senator Cynthia Lummis, who is a famous advocate for crypto, reportedly filed an amicus brief intending to support Coinbase in the court over the current lawsuit the SEC filed against the exchange.
Senator Lummis And Others Support Coinbase
According to the document, Senator Lummis claimed that the United States Congress is solely responsible for creating regulations to guide the conduct and operations of crypto entities and not the SEC. This stance maintained by the congresswoman highlights the importance of the unambiguous separation of powers in modeling the future of the crypto industry in the country.
Commenting on the lawsuit, Senator Lummis argued that the commission has ventured beyond its authorization by trying to label almost all cryptocurrency assets as securities. She emphasized that this overreaching act by the SEC extends beyond the commissions’ jurisdiction and trespasses the legislative rights of the US Congress.
Furthermore, the CEO of Metalawman, James A. Murphy, who is a legal expert, has also signaled his support for the stance maintained by Senator Lummis as he called for equitable crypto regulations. In his post on X (Twitter), the lawyer added that he is filing for an amicus brief in favor of Coimbase exchange’s motion to dismiss the lawsuit that the SEC charged against it.
The continuous advocacy and support which Senator Lummis shows to the crypto industry indicate that a strong sentiment is gradually building up within the industry. In addition, as the regulatory structure of the crypto industry continues to reshape, Lummis reportedly envisions a unified equilibrium between investor protection, regulatory transparency, and innovations.
Lummis Wants Restructuring Of Crypto Regulatory Framework In US
As a co-patron of the Lummis-Gillibrand cryptocurrency law bill, it is her duty to show commitment towards creating well-structured regulations for virtual assets, using the Howey test as a basis, according to the report. The bill, which was dubbed the Responsible Financial Innovation Act, aims to create a powerful regulatory structure for crypto assets in order to solve the current regulatory ambiguity facing the industry.
According to the report, Lummis’ stance seems to gain wide applause across the industry, as many spectators and crypto enthusiasts commended and supported her assertions. Some prominent supporters, including major players like the Cryptocurrency Council for Innovation and the Blockchain Association of the US, demonstrated their backing via filing for Amicus Briefs.
Furthermore, Senator Lummis reportedly tweeted a positive remark regarding the recently launched stablecoin by the PayPal payment platform. The tweet further back and depict her strong belief in the long-term success of the crypto industry in the financial system globally.
Commenting on PayPal’s announcement of its newly launched Stablecoin, Senator Lummis said the launch is another indication that cryptocurrency is here to stay. She added that Congress now has the responsibility to step up and create clear regulations for crypto in order to set America as one of the leading forces in crypto. Industry globally.