In June, the regulator sued Coinbase, accusing the site of trading unregistered securities. However, last week, the exchange’s lawyers demanded that the court dismiss the lawsuit. The defense claims that the crypto assets traded on the platform are not investment contracts.
Attorney John Deaton, who defends the interests of XRP holders, said that more than 2,330 Coinbase clients have expressed a desire to join the exchange as “amici curiae” – independent experts who are not considered participants in the litigation.
“Many simply do not want the SEC or Coinbase to speak for them. People are not happy that the agency can manipulate claims in court that it is protecting users in this way,” Deaton said.
The lawyer said that if users show sufficient interest in this case, their opinions can be presented and taken into account in court. Coinbase lawyers should receive a response from the SEC on July 13, although the deadline was originally set for August 7. In addition, instead of a preliminary court hearing, the court will consider pre-trial motions, postponing it from August 24 to July 13.
Deaton previously supported a securities clarity bill introduced by U.S. lawmakers Darren Soto and Tom Emmer. As Deaton put it, this bill could protect the industry from the SEC’s chicanery.
Source: Bits
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