Crypto exchange giant Coinbase is supporting Grayscale in its legal battle against the U.S. Securities and Exchange Commission (SEC).
Crypto asset manager Grayscale is suing the SEC in response to the agency’s rejection of spot market Bitcoin (BTC) exchange-traded fund (ETF).
A brief filed with the US Court of Appeals for the District of Columbia Circuit on October 18th argues that the SEC’s decision “unjustifiably limits investor choice.”
“In so doing, the Commission has abandoned its investor protection mandate, and it has abused its discretion by engaging in arbitrary and capricious practice of picking winners and losers among investment products.”
The brief was filed for the Blockchain Association, the Chamber of Digital Commerce, Chamber of Progress and Coin Center, which support Grayscale’s claims.
The non-profit organizations participate in the suit as amici curiae—parties who are neither the plaintiff nor defendant but intervene in the case to present their point of view.
“This matter implicates critical regulatory and policy issues that may have wide-ranging implications for the digital assets and blockchain ecosystem. Thus, amici curiae have particular interests in elucidating areas where there is considerable need for greater regulatory clarity or consistency.”
The document says that other amici are also set to submit their briefs to back Grayscale, including Coinbase.
“Counsel understands that the following amici also intend to submit briefs in support of the Petitioner: Coinbase Global, Inc. (“Coinbase”), the New York Stock Exchange (“NYSE”), the U.S. Chamber of Commerce, and certain former regulators and academics.”
Coinbase positions itself as Grayscale’s ally in the suit as it takes an aggressive stance on crypto-related issues. Last month, the exchange’s CEO, Brian Armstrong, said it is critical for the US to pass crypto regulations that bolster domestic innovation.
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