Attorney Patrick V. Kennedy has entered the legal battle between Coinbase and the United States Securities and Exchange Commission (SEC) as an advocate for the Chamber of Digital Commerce. Seeking to represent the Chamber of Digital Commerce as amicus counsel, Kennedy filed (1) a motion on August 31 to appear “pro hac vice” in the ongoing lawsuit. The Chamber of Digital Commerce, along with the Blockchain Association, has played a significant role as an amicus in the Coinbase vs. SEC lawsuit.
Amicus Counsel for Digital Commerce: Legal Support for Digital Asset Industry
Attorney Patrick V. Kennedy, hailing from McDermott Will & Emery, has filed a motion to serve as amicus counsel for the Chamber of Digital Commerce in the Coinbase vs. SEC lawsuit. The Chamber of Digital Commerce, like the Blockchain Association, is contributing its insights to the court as an entity not directly involved in the case but offering advisory perspectives.
Defending Against SEC Regulation: Challenging SEC’s Approach
The Chamber of Digital Commerce’s involvement in the Coinbase vs. SEC lawsuit aligns with its aim to counter the SEC’s attempts to regulate the digital asset sector through enforcement actions. Rather than offering clear guidelines, the SEC’s actions are seen as contradictory to the intentions of the U.S. Congress, which is actively shaping cryptocurrency regulations. It’s noteworthy that the SEC lacks explicit authority granted by Congress to oversee digital assets.
Industry and Executive Optimism: Support for Lawsuit’s Dismissal
Coinbase’s executives, Brian Armstrong and Paul Grewal, remain hopeful about the lawsuit’s outcome. Grewal asserts that the SEC, under Chair Gary Gensler, is stifling innovation in the U.S. cryptocurrency sector. Industry stakeholders and lawmakers are also advocating for the dismissal of the lawsuit, recognizing the need for regulatory clarity and innovation-friendly policies.
Regulatory Clarity and Defeats: SEC’s Recent Setbacks
The SEC’s recent losses in cases involving Ripple and Grayscale have highlighted its lack of clear criteria for classifying cryptocurrencies as securities. These rulings underscore the regulatory ambiguity surrounding cryptocurrencies. Despite Chair Gary Gensler’s stance that most cryptocurrencies should be classified as securities, the SEC’s credibility has been questioned due to its inconsistent claims and actions in the crypto space.
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