New lawyer Patrick Kennedy joins fight

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The crypto community, digital asset organizations and lawmakers have voiced their support for the dismissal of the United States Securities Exchange Commission (SEC) vs. Coinbase lawsuit. In a recent update, lawyer Patrick Kennedy has entered the fray, seeking court approval to represent the Chamber of Digital Commerce as amicus counsel.

In a legal document filed on Aug. 31, Kennedy submitted a request to be admitted pro hac vice (for this occasion) and intends to serve as counsel for amicus The Chamber of Digital Commerce. Along with the Blockchain Association, the Chamber of Digital Commerce has played a significant amicus role in the ongoing lawsuit. An “amicus” is a party or individual not directly involved in the case but joins to advise the court.

Screenshot of the motion for admission. Source: CourtListener

The Chamber of Digital Commerce aims to halt the SEC’s efforts to regulate the digital asset sector through enforcement actions. Instead of offering transparent guidelines and regulations, the SEC’s actions counter the intentions of both houses of the U.S. Congress, which are actively crafting cryptocurrency regulations.

Coinbase executives Brian Armstrong and Paul Grewal remain optimistic about the lawsuit’s dismissal. Grewal contends that the SEC and its Chair, Gary Gensler, are attempting to stifle cryptocurrency innovation in the United States. Additionally, lawmakers have called on the court to dismiss the lawsuit.

Related: Coinbase CEO reveals top 10 crypto ideas he’s urging devs to work on

The judgments in the Ripple and Grayscale cases have underscored the SEC’s lack of clarity in distinguishing which cryptocurrencies qualify as securities, highlighting a deficiency in regulatory clarity. In recent rulings, the SEC faced defeats against Ripple and, more recently, Grayscale, as it failed to provide adequate reasoning for rejecting the conversion of Bitcoin ETFs.

Gensler believes that all cryptocurrencies except Bitcoin should be classified as securities and that the SEC should have authority over the entire crypto industry. Nonetheless, the SEC’s credibility has eroded due to its seemingly illogical claims regarding cryptocurrencies. Furthermore, the SEC’s postponement of decisions on seven Bitcoin ETFs may result in financial losses for investors.

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