A consortium of six accomplished legal experts, specializing in the realm of securities law and its interconnected domains, have formally presented an amicus brief in a show of support for cryptocurrency exchange giant, Coinbase.
This legal endeavor takes place within the context of Coinbase’s ongoing legal tussle with the United States Securities and Exchange Commission (SEC).
In the sphere of law, an amicus brief is a significant document filed in court by an entity that is not directly enmeshed in the specific litigation.
The primary purpose of such a document is to contribute auxiliary arguments to one side of the case.
Notably, it underscores the far-reaching implications of the case beyond just the immediate litigants.
This collective of legal scholars submitted their amicus brief to the U.S. District Court for the Southern District of New York on August 11th.
Coinciding with this development, Senator Cynthia Lummis also extended an amicus brief in favor of the cryptocurrency exchange.
The cadre of scholars participating in this filing includes renowned names like Stephen Bainbridge from the University of California, Los Angeles; Tamar Frankel representing Boston University School of Law; Sean Griffith hailing from Fordham University School of Law; Lawrence Hamermesh associated with Widener University’s Delaware Law School; Matthew Henderson linked with the University of Chicago Law School; and Jonathan Macey, a distinguished personality from Yale Law School.
Within their filing, these scholars assert that established federal legal precedents and the well-regarded Howey test collectively recognize that investment agreements inherently entail expectations of business-generated income, profits, or assets.
In light of this, they beseech the court to uphold the recognized legal definition of an “investment contract” when interpreting the boundary of its application.
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Elaborating on this, they elucidate that for an investment contract to be in play, investors must be assured, by virtue of their investment, an ongoing contractual claim to the enterprise’s income, profits, or assets.
In the documentation, the scholars delve into an examination of pertinent cases that bolster their stance.
Importantly, these legal scholars explicitly emphasize that their connections to various universities or law schools hold no bearing on their involvement in the amicus brief.
In summation, the collaborative effort of these accomplished legal minds underlines a poignant testament to the complexity and significance of the ongoing legal dispute between Coinbase and the SEC, while striving to elucidate the intricate legal frameworks that encompass this scenario.
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