As the ongoing case between the United States Securities and Exchange Commission (SEC) versus Coinbase intensifies, the industry is waiting on every single update. Reportedly, Coinbase lawyers have included the example of an ongoing case in its defence against the SEC.
In its court filing from Wednesday, Coinbase claims that a recent U.S. Supreme Court judgment on student debt cancellation aids its fight against charges of operating illegally. The exchange then targets SEC and states that the lawsuit is a step by the regulator to exert “extraordinary wholesale power” over the $1 trillion digital asset industry.
Additionally, it represents a breach of powers of the kind judges recently ruled unlawful. Referring to the Supreme Court ruling from June 30, Coinbase alleged that the Secretary of Education had overstepped his authority by canceling around $430 billion in student debt.
Further, it stated that the ruling reinforces a legal doctrine that says that government agencies need clear support from Congress if taking a decision of major economic or political significance. It also stated that the “closely analogous” case will have a bearing on its own, because lawmakers still haven’t set out clear rules for crypto.
Notably, using this case as an example, Coinbase put its fight against the US authorities highlighting them and their methods in a rather authoritative light. In its ongoing fight with the SEC, the exchange has often outlined the use of fowl practices and the influence of the play of power. Even in its filing, Coinbase stated:
Far from granting the ‘clear congressional authorization’ required for the SEC to exercise such authority, Congress has expressly recognized that it has not yet delegated such regulatory authority and is actively considering regulatory structures for the digital asset industry.
On June 6th, the SEC filed charges Coinbase for violating federal securities laws and operating without a license. It alleged that Coinbase was operating as an unregistered broker, clearinghouse and exchange all in one go, having listed at least 13 different cryptocurrencies that are unregistered securities.
The judgement in the highlighted case came just days after the exchange sent its opening statement in which it rejected the base of allegations it build its case on. It also claimed that “the SEC has chosen” to pursue enforcement actions.
Following this, in its response, the SEC said it would oppose any motion for judgement Coinbase would file and asked the court to reject Coinbase’s arguments that the suit violated the major questions doctrine and other concerns. It also alleged that Coinbase intentionally violated laws.
The lawsuit had come to Coinbase months after the Wells Notice from March. Following this, Coinbase had retaliated with narrow legal action. Upon Coinbase’s petition, the US Court of Appeals for the Third Circuit responded to the complaint against the SEC regarding the need for clear rules for trading digital assets.
While the SEC has largely been rigid on its stance, US lawmakers are working on the topic of crypto regulation. As reported by Todayq News, Senators Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.) introduced a bill which favors giving authority to the Commodity Futures Trading Commission (CFTC) rather than the SEC. However, some say that any clarity regarding crypto regulation is going to be a long haul.