SEC Coinbase Case Receives Backing from Securities Regulators
The North American Securities Administrators Association (NASAA), a group of state securities regulators, has expressed support for the United States Securities and Exchange Commission (SEC) in its legal battle against Coinbase. In an amicus brief filed with the court, NASAA argued that digital assets should not receive preferential treatment and that Coinbase should not be allowed to avoid compliance by narrowly interpreting the law. NASAA stated that the SEC’s case against Coinbase is not extraordinary and that digital assets should be treated equitably within the existing legal framework.
The regulators cited the Howey Test, which determines whether certain transactions should be categorized as Investment contracts and fall under securities regulations. However, there has been disagreement within the digital asset industry about how the SEC has applied this test. Despite the controversy, the SEC maintains that digital assets that meet the criteria for investment contracts under the Howey Test are firmly grounded in existing legal standards. This viewpoint has received support from NASAA, who stated that it is neither novel nor extraordinary.
NASAA also invoked the “major questions doctrine,” which requires executive agencies to seek congressional approval when dealing with matters of significant political or economic importance. NASAA argued that an agency should not need specific congressional authorization to apply existing legislation to new fact patterns in complex and changing financial markets.
In addition, NASAA disputed Coinbase’s argument that digital assets are a substantial contributor to the American economy. According to NASAA’s general counsel Vincente Martinez, digital assets are not widely accepted as payment for goods or services and cannot be used to satisfy obligations to the government such as fees or taxes. NASAA stated that Coinbase has overstated the size and significance of the digital asset industry, particularly the portion that securities regulators oversee.
NASAA consists of 67 members, including securities regulators from all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico. The organization plays a crucial role in investor protection and Regulation in North America..
#Securities #Regulators #Support #SEC #Coinbase #Case
The North American Securities Administrators Association (NASAA), a group of state securities regulators, has expressed support for the United States Securities and Exchange Commission (SEC) in its legal battle against Coinbase. In an amicus brief filed with the court, NASAA argued that digital assets should not receive preferential treatment and that Coinbase should not be allowed to avoid compliance by narrowly interpreting the law. NASAA stated that the SEC’s case against Coinbase is not extraordinary and that digital assets should be treated equitably within the existing legal framework.
The regulators cited the Howey Test, which determines whether certain transactions should be categorized as Investment contracts and fall under securities regulations. However, there has been disagreement within the digital asset industry about how the SEC has applied this test. Despite the controversy, the SEC maintains that digital assets that meet the criteria for investment contracts under the Howey Test are firmly grounded in existing legal standards. This viewpoint has received support from NASAA, who stated that it is neither novel nor extraordinary.
NASAA also invoked the “major questions doctrine,” which requires executive agencies to seek congressional approval when dealing with matters of significant political or economic importance. NASAA argued that an agency should not need specific congressional authorization to apply existing legislation to new fact patterns in complex and changing financial markets.
In addition, NASAA disputed Coinbase’s argument that digital assets are a substantial contributor to the American economy. According to NASAA’s general counsel Vincente Martinez, digital assets are not widely accepted as payment for goods or services and cannot be used to satisfy obligations to the government such as fees or taxes. NASAA stated that Coinbase has overstated the size and significance of the digital asset industry, particularly the portion that securities regulators oversee.
NASAA consists of 67 members, including securities regulators from all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico. The organization plays a crucial role in investor protection and Regulation in North America..
#Securities #Regulators #Support #SEC #Coinbase #Case
