Crypto advocacy groups call on SEC for transparent guidelines amid Coinbase appeal

A coalition of key players in the cryptocurrency industry and advocacy groups have joined forces to urge the United States Securities and Exchange Commission (SEC) to establish clear guidelines to address regulatory ambiguity in the cryptocurrency space.
On March 18, several organizations, including the Crypto Council for Innovation (CCI), Satoshi Action Fund, Texas Blockchain Council, Paradigm, Lejilex, and the U.S. Chamber of Commerce, filed amicus briefs with the Third Circuit Court of Appeals, stressing the urgent need for comprehensive regulatory frameworks to govern digital asset markets in the United States.
The filings highlighted the negative impact of regulatory uncertainty on market participants, expressing concerns that the lack of clear guidelines could lead digital asset companies to relocate outside of the United States.
The joint filing from the Satoshi Action Fund and Texas Blockchain Council emphasized the importance of regulatory clarity, expressing concern over the uncertainty and paralysis caused by the SEC’s current stance. They argued that the absence of clear rules could force companies to make crucial decisions about their operational jurisdiction, ultimately affecting the domestic landscape.
The amicus briefs filed by the advocacy groups support Coinbase’s appeal, which was initiated through a petition submitted in July 2022. Coinbase’s petition urged the SEC to establish rules for tokens classified as securities under its purview.
However, the SEC’s denial of the petition in December 2023, followed by an enforcement action against Coinbase for alleged securities law violations, has further emphasized the need for regulatory clarity. The recent wave of amicus briefs reflects a unified call for the SEC to reevaluate its regulatory approach and provide clear guidelines for industry compliance.
Concerns have arisen regarding the SEC’s handling of regulatory matters in the cryptocurrency sector amidst the ongoing legal proceedings. The CCI’s brief criticized the SEC’s denial of Coinbase’s petition, describing it as a departure from the principles of fairness and regulatory transparency. Similarly, the U.S. Chamber of Commerce highlighted the negative implications of regulatory inaction, citing it as a barrier to innovation and consumer protection in the growing industry.
The timing of the appellate court’s decision is uncertain, but the outcome of the Coinbase case is expected to have significant implications for the regulatory landscape of digital assets. Notably, the SEC’s enforcement actions against prominent cryptocurrency firms, such as Binance, Kraken, and Ripple, have intensified scrutiny over the commission’s regulatory conduct.
Furthermore, a recent U.S. district court’s sanctions on the SEC for alleged “bad faith” behavior in a lawsuit against Debt Box highlight broader concerns about regulatory accountability and procedural fairness.
The collective efforts of advocacy groups and industry stakeholders underscore the urgent need for regulatory clarity in the cryptocurrency ecosystem. As the legal battle between Coinbase and the SEC unfolds, stakeholders in the digital asset landscape eagerly await the appellate court’s decision.
In the meantime, the industry continues to call for comprehensive guidelines, emphasizing the importance of regulatory adaptation to accommodate the evolving dynamics of the cryptocurrency market.
By addressing regulatory uncertainty and creating an environment conducive to innovation and compliance, the SEC has the opportunity to establish itself as a proactive guardian of the digital asset economy, boosting investor confidence and ensuring the long-term sustainability of this growing sector.