Washington, D.C. (Feb. 29, 2024) – On Thursday, Feb 29, Blockchain Association and the DeFi Education Fund filed an amicus brief in Securities and Exchange Commission vs. Payward, Inc. (Kraken) in support of the Defendant’s motion to dismiss.
The brief focuses on the meritlessness of the SEC’s attempt to sweep practically all digital assets within its regulatory purview despite Congress never granting the SEC this authority. The SEC’s constantly shifting position on what constitutes an investment contract does not hold weight under governing precedent and would have far-reaching – and untenable – consequences if adopted. Advancing its theories through ad hoc enforcement actions rather than through notice-and-comment rulemaking, while Congress is actively working on legislation, has left the digital assets industry in a state of regulatory confusion.
The following statement is attributed to Blockchain Association Head of Legal Marisa Coppel and DeFi Education Fund Chief Legal Officer Amanda Tuminelli:
“The theory on which the SEC is basing this case does not hold up to legal scrutiny and is yet another example of the SEC’s regulation by enforcement strategy, stifling innovation and creating even more regulatory confusion. We urge the court to grant Kraken’s motion to dismiss and reject the SEC’s attempt to improperly expand its jurisdiction.”
