Coinbase Files Fresh LEJILEX Amicus Brief To Challenge SEC Overreach

Godfrey Benjamin
July 10, 2024
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Coinbase CLO Reveals New Details on SEC’s Ethereum 2.0 Investigation Documents

Highlights

  • Coinbase has filed an Amicus Brief to support LEJILEX in fight against SEC
  • The suit seeks to address SEC's regulatory overreach in the crypto ecosystem
  • Coinbase is fighting series of related battle, hence validating its support

Leading cryptocurrency exchange Coinbase has shown its support for LEJILEX by filing an Amicus Brief challenging the U.S authorities’ overreach.

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Coinbase Demands Regulatory Clarity For Digital Assets

Coinbase Chief Legal Officer Paul Grewal wrote in an X post that the exchange has filed an amicus brief in support of Lejilex Exchange and advocacy group Crypto Freedom Alliance of Texas (CFAT) suit. The lawsuit is against the United States Securities and Exchange Commission’s (SEC) overreach and regulation by enforcement campaign towards the broad digital asset industry.

According to Grewal, the Commission led by Gary Gensler, has never really made effort to explain the scope of its authority over the crypto sector. Rather, it refused to engage in necessary and engaging rule making even with crypto exchanges’ proactive engagement with the authorities.

This doggedness being exhibited by the SEC places digital asset industry in the US under unfavorable conditions, per the Coinbase CLO explanation. Stakeholders could either choose to remain in the United States and face the discrimination from the securities regulator or cease operations in the region.

Unfortunately for the U.S. and its economy, many crypto firms have chosen the second option. In May, Coinbase integrated TransFi into its Wallet and pushed it to investors in the Philippines, Vietnam, and Indonesia. Similarly, Binance.US announced the cessation of its operations for all customers in Washington.

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Lejilex And CFAT Sue SEC

For a background into the Lejilex story, the Fort Worth headquartered crypto firm, Lejilex, in collaboration with the CFAT sued American securities regulator in February.

In their filing, they challenged the SEC’s crypto regulation authority, stating that it had overstepped the bounds of its regulatory jurisdiction. They said the Commission assumed control over the digital asset space without apparent legislative authority. In addition, they sought judicial clarity on digital assets as non-securities.

Their requests reflects the absence of clear and robust crypto regulatory framework in the US. Unfortunately, several cryptocurrency exchanges including Binance, Kraken and even Coinbase have had to pay dearly for this shortcoming that is not their doing. Therefore, Coinbase’ decision to support the lawsuit does not come off as a surprise.

At the beginning of this year, Grewal also argued against SEC overreach in a legal battle between Coinbase and the regulator. It does not look like Coinbase will be backing down in its push for regulatory clarity soon.

Read More: Worldcoin Extends Deadline To Redeem WLD Grant Reservation

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.