Coinbase Lawyers Say Biden’s Student Loan Ruling Can Benefit Their Defense against SEC
Lawyers representing Coinbase, the crypto exchange, have stated in their latest filing that a recent US Supreme Court judgment on student debt cancelation could benefit their defense against the US Securities and Exchange Commission (SEC).
![](data:image/svg+xml;utf-8,<svg xmlns="http://www.w3.org/2000/svg" width="720" height="450" />)
The SEC had charged Coinbase in June for violating federal securities laws, to which Coinbase responded, accusing the SEC of attempting to exert excessive control over the broader crypto industry.
Coinbase's filing refers to a Supreme Court ruling on June 30, which found that the Secretary of Education had exceeded their authority in canceling a significant amount of student debt. This ruling underscores the need for government agencies to have clear support from Congress for decisions with significant economic or political impact.
Coinbase believes that a similar case, Biden v. Nebraska, will impact their own case as there are still no specific regulations in place for cryptocurrencies. The filing indicates that the parties will have a preliminary hearing in a New York courtroom later today, with the trial potentially lasting for years.
In another development, Bank of America has reportedly been blocking accounts associated with transactions with Coinbase. Muneeb Ali, co-founder of Stacks, revealed on Twitter that his personal account with Bank of America was closed after 15 years, potentially due to his use of the account for Bitcoin investments through Coinbase.
Coinbase CEO Brian Armstrong has acknowledged the issue and initiated a Twitter poll to gather feedback from his followers regarding the situation.
5 comments