Amicus brief filed by Senator Lummis in support of Coinbase’s dismissal request to the SEC

The SEC, according to Senator Lummis, is trying to “circumvent the political process” by becoming the go-to expert on cryptocurrency, which he claims is illegal.

Coinbase has filed a request to dismiss a case brought by the U.S. Securities and Exchange Commission, and crypto-friendly Senator Cynthia Lummis has submitted an Amicus Brief in support of that move.

Amicus briefs are legal documents submitted to the court by third parties who have no stake in the underlying matter. They are often used to bolster the claims of one party in a lawsuit and highlight the case’s implications for parties beyond the immediate dispute.

The Senator said that the SEC is trying to acquire “primary influence” over the cryptocurrency industry by filing litigation against Coinbase for suspected securities breaches while regulation and other considerations are still “under active consideration by Congress and multiple agencies.”

“The SEC pursues its enforcement action at a time when Congress and governments across the globe are debating how to regulate digital assets. To act on a matter of such fundamental economic and political importance, Congress, and not the SEC, has constitutional authority.

Despite the SEC’s efforts to gain wide-ranging control over the crypto asset markets, the vast majority of legislation bills now before Congress would instead vest much of such control in other agencies.

Lummis continued her case in the court filing by saying the SEC is overstepping its bounds by calling practically all crypto assets securities. She called the SEC’s approach to regulating by enforcement an effort to “legislate by enforcement.”

Lummis is not the only one who has filed an Amicus Brief in favour of Coinbase’s dismissal request. This can’t be what Congress meant when it gave the SEC jurisdiction to oversee securities, as the SEC’s interpretation risks including many assets that aren’t securities.

When it comes to federal securities rules, the SEC believes that almost all digital assets traded on the secondary market qualify as investment contracts. However, there are no contractual duties involved in these types of agreements.

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