Coinbase Users Rally: 2,300 Join as Amici Curiae in Legal Battle with SEC

The renowned cryptocurrency attorney,  john e deaton john e deaton john EntrepreneurHostMarket Analyst , has announced a noteworthy increase in the number of Coinbase customers intending to have their voices heard in the ongoing dispute between Coinbase and the U.S. Securities and Exchange Commission (SEC). 

His tweet confirmed that 2,331 crypto holders had expressed their interest in participating as amici curiae in the proceedings. Deaton clarified that their involvement wasn’t about defending Coinbase, but about asserting their rights and ensuring their interests were properly represented.

SEC’s Rebuttal

In a recent turn of events, the SEC is now set to reveal its counterarguments to Coinbase’s legal defense earlier than previously anticipated. On June 29, a court order confirmed that the SEC’s response would be delivered on July 13. This swift progression was triggered by an inventive move by Coinbase, who submitted their initial response 40 days before the deadline of August 7.

This strategy required the SEC to present a response by July 3, per the rules of procedure. However, the SEC requested and was granted a three-day extension due to the July 4 holiday weekend.

Coinbase’s Strong Defense

Coinbase has been steadfast in asserting that the SEC lacks jurisdiction over many of the tokens identified in the commission’s case. In their written response, Coinbase pointed out that the SEC’s action violated due process and constituted an abuse of discretion, with the even more significant issue being that the tokens in question fell outside the SEC’s regulatory remit.

The hearing on July 13, presided over by Judge Katherine Polk Failla, will determine whether Coinbase will be permitted to proceed with this line of defense. Typically, this is a routine decision, with approval given unless the opposing party presents a compelling reason otherwise.

In a related development, BlackRock, the world’s largest asset manager, has selected Coinbase as the exchange for its Surveillance Sharing Agreement (SSA) as part of its spot Bitcoin ETF filing.