Regulators weigh in on SEC vs Coinbase

An association of 68 securities regulators (all 50 states, + others) just piled on Coinbase with a motion to submit an amicus brief in support of SEC. The brief recommends against Coinbase's position.

DYOR: the filing is here https://www.courtlistener.com/docket/67478179/77/securities-and-exchange-commission-v-coinbase-inc/

Summary (from filing):

The SEC’s theory in this case is consistent with the agency’s longstanding public position, the positions advanced by state securities regulators, and even the understanding of digital asset issuers. It is also well within the bounds of established law. The Court should reject Coinbase’s attempt to narrow and misapply the established legal framework in order to avoid being subject to the same regulatory obligations as all other participants in the Nation’s securities markets. And the Court should decline to treat digital assets as somehow special.

Edit to add: and now a few scholars have chimed in with an amicus curae brief of their own, trashing the major questions doctrine defence.

Here: https://www.courtlistener.com/docket/67478179/78/1/securities-and-exchange-commission-v-coinbase-inc/

Coinbase argues that the major questions doctrine should limit the reach of the SEC’s statutory authority and supersede judicial precedent regarding the nature of securities. This argument misunderstands the scope of the major questions doctrine as articulated in recent decisions by the Supreme Court and would improperly apply the doctrine beyond its reach.

Not a good day for the legal team at Coinbase.