If the SEC is going to make the digital asset industry abide by rules that were made long before digital assets — or modern technology — existed, then they have to explain how the rules apply, Paradigm argues in an amicus brief.
CCI, the Crypto Council for Innovation (CCI), who also filed an amicus curiae brief in support Coinbase said that even though digital asset companies would have to register at SEC. “there is no actionable guidance to delineate which assets the SEC thinks require registration.”
Briefs have been filed to support Coinbase in its fight with the SEC.
“Until the SEC engages in the rulemaking Coinbase has requested, the digital-assets industry is stuck in limbo, simultaneously told to ‘come in and register’ yet having no effective means of doing so,” Paradigm written.
Paradigm shares the same concerns as US Chamber of Commerce which filed an amicus brief on behalf of Coinbase. Chamber of Commerce claims that SEC action makes Americans feel unsafe. “lose out on the practical benefits” The digital assets industry
CCI stated that SEC was not a member of the CCI “failure to respond” Coinbase has caused a problem “tangible harm to a major American industry.”
“It is no surprise that the SEC’s actions have crippled a nascent industry and sown confusion among countless firms unable to conform to the SEC’s view of the law or challenge that view in court,” Paradigm’s short continued.
Continue to enforce the law as it is. “good actors” In the Industry have “no viable path” CCI claims that forward is the CCI’s argument.
“The closest the SEC has come to providing guidance is a 2019 statement which offered a non-exhaustive list of numerous factors with no explanation as to how those factors should be applied or weighted,” CCI’s brief stated that
Coinbase received a Wells notification from the SEC in March concerning an alleged violation of securities laws. The crypto exchange then sued the SEC for clarification on its crypto regulations.
Coinbase stated that they had requested regulatory clarification in July of 2022. The company claimed that it never received a response from the Commission.
“It is unreasonable for the SEC — an agency with over 4,500 employees — to take nine months (and counting) to complete that simple task,” Coinbase stated in a court filing.
The SEC was given ten working days by a judge on 4 May to answer Coinbase.
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