Just In: Coinbase Files Amicus Brief To Back DeFi Education Fund Against US SEC

American crypto trading platform Coinbase Global Inc is not backing down in calling out the US Securities and Exchange Commission (SEC) over its regulation by enforcement strategies. In its latest move in this regard, the firm has filed an Amicus Brief on behalf of DeFi Education Fund and Beba.

The Coinbase Amicus Brief – The Keypoints

As spotlighted by Coinbase CLO Paul Grewal, the US SEC is waging war against legitimate American companies. The legal veteran claims the markets regulator cannot make up its mind about the claim of the law.

With this Amicus Brief, the exchange is directly countering the claims of the regulator that either Beba or DeFi Education Fund violated Federal Securities laws. The SEC and exchange’s lawsuit is still in Court, underscoring its commitment to back other Web3 firms fighting similar regulatory strain.

Today @coinbase filed an amicus brief on behalf of @BebaCollection and @fund_defi to stop the destructive regulation-by-enforcement campaign waged by @SECGov against law-abiding American companies. Most destructive of all is that the SEC itself can’t even make up their mind… pic.twitter.com/qeFdCrdsKn

— paulgrewal.eth (@iampaulgrewal) October 28, 2024

In its Amicus Brief, Coinbase claimed the US SEC has different instances where it provided different answers to the same question. For instance, the exchange said the regulator said the digital asset is not a security in 2018. However, it changed its mind in 2021 when it said digital assets represents investment contracts.

The exchange supported Beba and DeFi Education Fund in that the regulator has thus far refused to provided the needed clarity.

Crypto Firms All Out Against US SEC

While the Beba and DeFi Education Fund tussle remains active, a number of crypto firms are expecting a likely suit from the regulator.

Earlier this year, OpenSea received a Wells Notice from the US SEC. The Gary Gensler-led watchdog claimed that the Non-Fungible Tokens (NFTs) it hosts on its platform are investment contracts. Rather than take the verdict, the firm has promised to fight the regulator in court if needed.

Robinhood and Uniswap were equally served a Wells Notice as part of the SEC’s regulatory campaign. Neither firm has hinted at any plans for potential settlement incase of a lawsuit. This means, if the enfofrcements do change, a situation like Coinbase versus SEC may emerge the more in the future.