U.S. Securities and Exchange Commission’s recent moves have made it unpopular in the cryptocurrency community.
The latest SEC lawsuit against cryptocurrency exchange Coinbase seems to have been met with universal disapproval.
John Deaton, a lawyer and crypto supporter, tweeted that the agency was “arrogant” and “drunk off power.” Deaton claims that recent actions taken by government bodies may result in their having “less power and influence.” He made the remark in response to a discussion of the SEC’s case against cryptocurrency exchange Coinbase.
Only a few weeks ago, Coinbase said that the regulator had ordered it to remove support for any tokens save Bitcoin from its platform. Coinbase has received unexpected support amid the continuing case brought against it by the regulator.
Six experts in the field of securities law have recently submitted “Amicus” papers (also known as “friends of the court”) in favour of Coinbase. Academics from places like Yale, the University of Chicago, UCLA, and Fordham rebutted the SEC’s claims about crypto tokens. In particular, academics dispute the SEC’s position that digital tokens traded on secondary markets constitute investment contracts.
Coinbase has also been the target of a similar request for the dismissal of the SEC lawsuit from U.S. Senator Cynthia Lummis and other crypto advocacy organisations. The petition states that the defendants believe the SEC’s action against the cryptocurrency exchange exceeds the SEC’s statutory power.
In a similar development, former SEC official John Reed Stark has said that, without a change of heart, the commission will not approve a Bitcoin Spot ETF. A Republican commissioner, the lawyer adds, may lead to more favourable crypto regulations in the United States, even if the attorney concedes that political politics are impacting US crypto policy.
