Coinspeaker
Coinbase Takes Preemptive Legal Measures to Navigate Regulatory Storm
In the face of intensified regulatory scrutiny within the cryptocurrency industry, Coinbase Global Inc (NASDAQ: COIN), a prominent American digital assets service provider, took a strategic legal approach to proactively influence court rulings in unrelated cases before becoming the primary target of a US crackdown.
According to a recent report by Reuters, Coinbase engaged in a counterattack by enlisting the expertise of highly esteemed attorneys in two separate crypto-related lawsuits filed by the US Securities and Exchange Commission (SEC) before the Commission filed its own lawsuit on June 6. The SEC claimed in the suit that Coinbase operated illegally in the country without proper authorization from the authorities.
By strategically involving itself in these cases, Coinbase aimed to sway judges to adopt specific viewpoints and perspectives on open legal questions, which has become critical in its legal battle with the regulatory body.
Legal experts have stated that while a favorable ruling in an unrelated crypto case at the trial court level may not directly impact Coinbase’s current situation with the SEC, the company could potentially reference such a ruling as part of its defense strategy.
This strategic maneuvering reflects the exchange’s commitment to navigating the unregulated nature of crypto assets and defending its position amidst the growing scrutiny faced by the industry from the US government.
Coinbase has been a vocal advocate for introducing a clear regulatory framework for digital assets. Earlier this year, the exchange launched a pro-crypto policy campaign called Crypto435, urging American policymakers to develop comprehensive legislation governing the use of cryptocurrencies in the country.
The exchange also plans to mobilize 50 million crypto enthusiasts and users to join political forces in their respective districts to champion clear regulations in the crypto space. The move comes after the SEC issued a Well Notice to the exchange and informed them of a potential civil suit.
Coinbase Files Amicus Curiae Brief
In addition to recruiting top-tier lawyers to bolster its defense, the American crypto exchange has also filed “amicus briefs,” commonly known as friend-of-the-court briefs, to support defendants in the two cases.
According to Gibson Dunn & Crutcher, a renowned law firm in America, amicus briefs are a common occurrence in the US Supreme Court. Still, they are relatively rare in federal trial courts, representing only 0.1% of cases.
However, there has been an increasing trend of various crypto industry groups filing amicus briefs to support defendants within SEC cases. For instance, in the ongoing legal battle between the SEC and Ripple Labs, several crypto companies and enthusiasts, including Coinbase and the American-based crypto group Blockchain Association, have submitted separate amicus briefs to stand with Ripple.
Coinbase’s argument centers around the notion that the company deserves fair notice rather than facing surprise enforcement actions, which is the SEC’s style of regulation in the industry.
Coinbase Takes Preemptive Legal Measures to Navigate Regulatory Storm
