The legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC) has gained significant traction, as around 5,000 Coinbase users have signed up as potential amicus curiae. This development was revealed by pro-XRP lawyer John Deaton, who stated that he would file the amicus curiae brief on behalf of these users in the event that the case proceeds to either a District Court or on appeal.
An amicus curiae, which translates from Latin to “friend of the court,” refers to an individual or entity that is not directly involved in a case but offers valuable information, expertise, or insight that is relevant to the proceedings. The purpose of an amicus curiae is to assist the court in making well-informed judgments. In cases where the court feels the need for additional information before reaching a decision, the role of an amicus curiae can be critical.
Deaton firmly believes that the involvement of these Coinbase users through the amicus curiae filing can make a significant difference in the outcome of the case, just as it did in Ripple’s battle against the SEC. In the past, Deaton has represented 75,000 XRP holders in a similar action against the financial regulator. He has also initiated actions in support of Ethereum holders against the New York Attorney General in her case against KuCoin.
While Coinbase users eagerly join the legal battle, the exchange already enjoys support from various crypto stakeholders. Senator Cynthia Lummis, a prominent advocate for cryptocurrency, has voiced her support for Coinbase. Additionally, a cohort of legal scholars and the Chamber of Digital Commerce have given their backing to the exchange in its fight against the SEC.
The legal dispute between Coinbase and the SEC will proceed to the next phase, as Judge Katherine Polk Failla has granted approval for an oral argument regarding Coinbase’s motion for judgment on the pleadings. The court is scheduled to hear the case on January 17, 2024.
Chief Legal Officer at Coinbase, Paul Grewal, expressed gratitude for the court’s decision and affirmed the exchange’s preparedness to address any inquiries posed by the court.
In response to the SEC’s case, Coinbase has sought dismissal, arguing that the regulator is overstepping its authority by categorizing cryptocurrencies listed on their platform as securities. This assertion by Coinbase raises crucial questions about the SEC’s jurisdiction and its approach to regulating the cryptocurrency industry.
The involvement of 5,000 Coinbase users as potential amicus curiae in the legal battle against the SEC underscores the growing support and significance of the case. The power of amicus curiae in providing valuable insights to the court cannot be undermined. As the legal proceeding continues, all eyes will be on the court’s decision and its potential impact on the future of cryptocurrency regulation.
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