Coinbase has released an amicus brief in the Beba vs. U.S. Securities and Exchange Commission (SEC) case, supporting Beba LLC and the DeFi Education Fund against the SEC. The brief criticizes the SEC's approach, describing it as targeting digital-asset companies.
According to Unchained, Beba and the DeFi Education Fund filed a pre-enforcement lawsuit against the SEC ahead of a planned airdrop. Beba, a Texas-based apparel company, intended to distribute its $BEBA token through this airdrop. The plaintiffs and several amicus curiae argue that given the SEC's history of lawsuits against crypto projects, it is reasonable to expect that the SEC would pursue enforcement action against Beba for its airdrop.
Microsoft Start reported that the SEC has faced criticism for its rules and regulations, which lack clarity regarding legal and illegal activities in the digital asset space. Although the SEC maintains that existing rules apply to digital assets, it has not provided specific guidance on when these rules are applicable or how digital asset companies should comply.
"The SEC has even openly denied that it has an obligation to make compliance with its rules feasible at all," Coinbase states in its brief according to Cryptonewsz. Therefore, Coinbase urges the court to grant declaratory relief, emphasizing that "granting declaratory relief in this case would be a critical step on the path out of this morass."
The SEC holds broad authority under federal securities laws to regulate the securities industry with a focus on protecting investors, maintaining efficient markets, and promoting capital formation. It is led by up to five Commissioners appointed by the President with Senate approval, ensuring no more than three Commissioners are from the same political party.
Coinbase is a cryptocurrency exchange offering services such as trading, staking, safekeeping, and global transfers of digital assets. It operates in over 100 countries and serves over 245,000 ecosystem partners while managing $269 billion in safeguarded assets.
