As the legal tug-of-war between Coinbase and the SEC continues, the recent passage of comprehensive cryptocurrency legislation by the US Congress has reshuffled the deck. The exchange platform is now seeking immediate appellate review, arguing that this new law calls into question the legitimacy of the SEC’s action.
FIT21, a decisive turning point in Coinbase’s legal battle with the SEC
On May 22, the U.S. House of Representatives passed the passed the crypto bill called “Financial Innovation and Technology for the 21st Century Act (FIT21).
The aim of this new law is to clarify the roles of regulators, protect investors without curbing innovation, and encourage the integration of cryptocurrencies into the traditional financial system.
This law also aims to limit the scope of action of the Securities and Exchange Commission (SEC) in the regulation of digital assets. A new direction reinforces Coinbase in its legal battle with the stock exchange regulator.
Coinbase seizes the opportunity
In this context, Coinbase a immediately reacted by requesting, on Friday, an immediate appeal in its case against the SEC. According to the platform, the recent legislation supports its argument on the need for a speedy review of the case by a higher court.
Coinbase points out in his submission that the bipartite nature of the FIT21 law indicates a substantial disagreement with the current regulatory framework of the SEC. The company therefore suggests that immediate appellate review could bring federal securities regulation into line with the evolving legislative consensus.
For Coinbase, the the court’s earlier decision erroneously applied securities law to transactions involving digital assets. However, it is precisely this point that is called into question by the new law adopted by the Congress.
Passage of the law FIT21 does indeed reflect a growing willingness on the part of the Congress to circumscribe the scope of intervention of the SEC on the crypto market. An underlying trend that could weigh heavily in the balance.
Coinbase’s appeal comes at a crucial time. If the court finds in favor of the exchange platform, it could considerably reduce the scope of the SEC’s lawsuit, and more broadly reshape the crypto regulatory landscape in the United States.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
