Coinbase CLO Tasks Lawmakers Towards Crypto Remittances

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Coinbase Files Fresh Amicus Brief To Challenge SEC Overreach – Crypto News

Published

1 year ago

July 10, 2024

Dripp

Leading cryptocurrency exchange Coinbase has shown its support for LEJILEX by filing an Amicus Brief challenging the U.S authorities’ overreach.

Coinbase Demands Regulatory Clarity For Digital Assets

Coinbase Chief Legal Officer Paul Grewal wrote in an X post that the exchange has filed an amicus brief in support of Lejilex Exchange and advocacy group Crypto Freedom Alliance of Texas (CFAT) suit. The lawsuit is against the United States Securities and Exchange Commission’s (SEC) overreach and regulation by enforcement campaign towards the broad digital asset industry.

A busy, busy day ahead. First up: @Coinbase filed an Amicus Brief in support of @LEJILEX and the Crypto Freedom Alliance of Texas suit against @SECgov’s overreach and regulation by enforcement campaign towards the digital asset industry. 1/5

— paulgrewal.eth (@iampaulgrewal) July 10, 2024

According to Grewal, the Commission led by Gary Gensler, has never really made effort to explain the scope of its authority over the crypto sector. Rather, it refused to engage in necessary and engaging rule making even with crypto exchanges’ proactive engagement with the authorities.

This doggedness being exhibited by the SEC places digital asset industry in the US under unfavorable conditions, per the Coinbase CLO explanation. Stakeholders could either choose to remain in the United States and face the discrimination from the securities regulator or cease operations in the region.

Unfortunately for the U.S. and its economy, many crypto firms have chosen the second option. In May, Coinbase integrated TransFi into its Wallet and pushed it to investors in the Philippines, Vietnam, and Indonesia. Similarly, Binance.US announced the cessation of its operations for all customers in Washington.

Lejilex And CFAT Sue SEC

For a background into the Lejilex story, the Fort Worth headquartered crypto firm, Lejilex, in collaboration with the CFAT sued American securities regulator in February.

In their filing, they challenged the SEC’s crypto regulation authority, stating that it had overstepped the bounds of its regulatory jurisdiction. They said the Commission assumed control over the digital asset space without apparent legislative authority. In addition, they sought judicial clarity on digital assets as non-securities.

Their requests reflects the absence of clear and robust crypto regulatory framework in the US. Unfortunately, several cryptocurrency exchanges including Binance, Kraken and even Coinbase have had to pay dearly for this shortcoming that is not their doing. Therefore, Coinbase’ decision to support the lawsuit does not come off as a surprise.

At the beginning of this year, Grewal also argued against SEC overreach in a legal battle between Coinbase and the regulator. It does not look like Coinbase will be backing down in its push for regulatory clarity soon.