Wyoming Republican Senator Cynthia Lummis urged the U.S. District Court for the Southern District of New York to dismiss the SEC‘s case against the bitcoin exchange Coinbase, arguing that, in her view, the regulator’s stance toward cryptocurrency runs counter to current legislative efforts.
In the filing, she argued that the Commission is overstepping its regulatory remit, since any decision on a matter affecting the national economy or society should be backed by congressional authorization.
“Regulation of crypto assets has significant economic and political significance. It is the subject of dozens of recent hearings in Congress and legislative proposals,” Lummis said.
In late July she, together with other senators, introduced bill on regulating digital assets.
Also, a number of public-interest groups, including Blockchain Association, Crypto Council for Innovation, Consumer Technology Association and the Chamber of Progress, joined in appealing to dismiss the SEC’s case against Coinbase.
“By seeking to regulate the sale of almost all digital assets on secondary markets, the SEC aims to extend its oversight not only to the trillion-dollar crypto industry but potentially to countless other assets,” they said.
In March 2023, Coinbase received a notice from the SEC regarding an investigation into listing procedures on the platform and its products — Coinbase Prime, Coinbase Wallet and Coinbase Earn.
In June the regulator accused the exchange of allegedly operating as an unregistered exchange, broker and clearing agency.
Earlier the U.S. Chamber of Commerce endorsed Coinbase, noting that the Commission is “deliberately creating a dangerous and uncertain environment” for crypto firms in the country.