Coinbase Inc. found new allies to sue the SEC in court over cryptocurrency laws. Paradigm, the Crypto Council for Innovation, and other organizations have filed arguments in support of Coinbase.
Paradigm's counsel said the SEC's approach is unsuitable for the decentralized crypto market. The SEC requires a central issuer for the registration procedure, which is unworkable for crypto assets with decentralized operations.
The difference within the SEC creates additional questions. Two Republicans on the commission oppose Chair Gary Gensler's views. Coinbase called on the SEC for regulations in 2022 but received a rejection.
It is now filing a legal challenge to this ruling. The Crypto Council's brief focuses on the SEC's unwillingness to enable industry involvement. This method drives businesses to make sense of evolving perspectives and encourages them to seek out friendlier regions.
The avalanche of favorable briefs, including the U.S. Chamber of Commerce, has boosted Coinbase's confidence. Paradigm maintains that compliance requires predictability, which existing SEC norms lack. The ongoing battle aims to achieve clarity through regulation rather than enforcement.
