What is an Amicus Brief?
An amicus brief, though typically not from a direct party in the case, is a powerful tool used to underscore the broader implications a lawsuit can have. Its main objective is to bolster arguments in favor of one side of the lawsuit.
Notable Figures Backing Coinbase
It wasn’t just legal scholars showing their support for the cryptocurrency exchange. On the same day of the filing, Senator Cynthia Lummis also presented an amicus brief championing Coinbase’s stance.
The Scholars and Their Argument
Stephen Bainbridge, Tamar Frankel, Sean Griffith, Lawrence Hamermesh, Matthew Henderson, and Jonathan Macey are the prominent figures who’ve rallied behind Coinbase. Their respective backgrounds span from UCLA to Yale Law School.
Their main argument? That existing federal precedents and the well-regarded Howey test recognize that investment contracts require the anticipation of certain business outcomes like income, profits, or assets. They’ve implored the court to stay true to this conventional understanding, stating: “An investor must be promised, by virtue of his or her investment, an ongoing contractual interest in the income, profits, or assets of the enterprise.”
Distinction from Academic Affiliations
Despite their impressive academic ties, these scholars have been quick to point out that their university affiliations don’t tie into their support for Coinbase in this brief. This act purely stems from their expert understanding and interpretation of securities law.
Conclusion: A Defining Moment for Crypto and Securities Law
This collective move by esteemed legal scholars to back Coinbase is not just a testament to the importance of this case but also signals the intricate interplay between cryptocurrency and existing securities regulations. As the boundaries of technology and law continue to intersect, the outcome of this lawsuit could very well set the precedent for how crypto exchanges and their offerings are viewed in the legal spectrum. With such weighty implications on the line, the crypto world eagerly awaits the court’s interpretation and decision.
