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US crypto firms support Coinbase’s appeal of SEC regulatory petition denial
Numerous US crypto companies and industry stakeholders have rallied in support of Coinbase’s legal battle against Securities and Exchange Commission (SEC). These companies highlighted widespread concerns about regulatory uncertainty plaguing the digital assets sector. The move comes as Coinbase, one of the popular cryptocurrency exchanges in the United States, accepts the SEC’s rejection of its regulatory petition.
Texas Blockchain, Paradigm and Others Support Coinbase Petition
Coinbase’s petition asked for clarity on how securities laws apply to digital assets. Among the notable entities backing Coinbase is Paradigm Operations LP, a technology investment firm. With a keen interest in regulatory clarity, Paradigm’s amicus brief
highlighted the detrimental impact of the SEC’s opaque stance on digital assets.
They echoed Coinbase’s sentiment that the absence of clear rules and guidelines stifles innovation, leaving entrepreneurs and investors grappling with uncertainty around legal requirements. Additionally, Legit.Exchange, a Texas-based digital asset trading platform, has also joined the fray. In its amicus brief against the SEC, Legit.Exchange sought to avoid classification as a stock exchange.
Additionally, Legit.Exchange highlighted the regulatory ambiguity created by SEC enforcement actions against similar platforms Coinbase. Furthermore, they stated that such uncertainty hinders market development and undermines investor confidence.
Additionally, the U.S. Chamber of Commerce, which represents a broad range of businesses across all industries, has expressed its support for Coinbase’s cause. Underscoring the need for regulatory clarity, the Chamber criticized the SEC’s approach. They believe the SEC’s regulatory ambiguity hinders investor protection and capital formation.
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CLO Paul Grewal expresses gratitude
Additionally, Satoshi Action Fund and Texas Blockchain partnered to file the amicus brief against the SEC. They highlighted the broader social implications of regulatory uncertainty in the digital assets sector. Additionally, they highlighted the importance of federal legislation and transparent regulatory processes to spur innovation, spur economic growth, and address environmental challenges.
Additionally, the Crypto Council for Innovation (CCI), a coalition of industry leaders advocating for responsible global regulation of digital assets, condemns the SEC’s enforcement-focused approach. CCI opposed the SEC’s denial of Coinbase’s petition. They highlighted the need for clear regulatory guidance for the long-term success and competitiveness of the sector on the global stage.
In response to the large outpouring of support, Coinbase’s Chief Legal Officer (CLO). Paul Grewal expressed gratitude. He turned to
Coinbase’s CLO further echoed the sentiment of urgency, highlighting the critical need for the SEC to provide clear rules and guidance on digital assets. Additionally, he thanked Paradigm, Texas Blockchain, Satoshi Action Fund, Legit.Exchange, Chamber of Commerce, and CCI for sharing their perspective with the court.
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