Around 5,000 Coinbase users have recently signed up as potential amicus curiae in the ongoing legal dispute between Coinbase and the U.S. Securities and Exchange Commission (SEC). This article critically examines the significance of this development and its potential impact on the case.
An amicus curiae, which translates from Latin to “friend of the court,” is a legal term referring to someone who is not a party to a case but offers information, expertise, or insight that bears on the case. It is noteworthy that these 5,000 Coinbase users are not directly involved in the legal dispute but have shown their support by filing the amicus curiae brief. Such assistance to the court can be critical in cases where the court feels the need for additional information to make an informed judgment.
Pro-XRP lawyer John Deaton, who represents the interests of these Coinbase users, believes that the filing of the amicus curiae brief can make a significant difference in the case. He draws parallels with Ripple’s battle against the SEC, where a similar action involving amicus curiae briefs played a role. It is undeniable that the involvement of a significant number of Coinbase users in the legal battle will bring attention and potentially influence the court’s decision.
While Coinbase users are eager to join the legal battle, it is important to note that the exchange already enjoys support from various crypto stakeholders. Senator Cynthia Lummis, a vocal advocate for cryptocurrencies, has expressed support for Coinbase. Additionally, a cohort of legal scholars and the Chamber of Digital Commerce have also lent their support to the exchange. This broad coalition of support strengthens Coinbase’s position and puts pressure on the SEC.
Next Phase of the Legal Dispute
The ongoing legal dispute between Coinbase and the SEC is set to move forward as Judge Katherine Polk Failla has granted approval for an oral argument regarding Coinbase’s motion for judgment on the pleadings. This next phase of the case will occur on January 17, 2024. The court’s decision to allow an oral argument signifies the seriousness with which the court regards this case.
In response to the SEC’s case, Coinbase has sought dismissal, asserting that the regulator is exceeding its authority by categorizing cryptocurrencies listed on their platform as securities. The exchange firmly believes that cryptocurrencies should be treated differently from traditional securities and that the SEC’s classification is unwarranted. Coinbase’s Chief Legal Officer, Paul Grewal, articulated the exchange’s readiness to address any inquiries or concerns posed by the court.
The involvement of 5,000 Coinbase users as potential amicus curiae in the legal battle against the SEC marks a significant development. It showcases the determination of cryptocurrency users to assert their rights and challenge the regulatory overreach of the SEC. With the support of Senator Cynthia Lummis, legal scholars, and the Chamber of Digital Commerce, Coinbase gains a formidable coalition of stakeholders to back its position. As the legal dispute progresses, the court’s decision regarding Coinbase’s motion for judgment on the pleadings will provide further insight into the potential outcome of this battle between Coinbase and the SEC.