The regulator sued Coinbase in June, accusing the site of trading in unregistered securities. However, last week, the lawyers of the stock exchange asked the court to dismiss the lawsuit. The defense argues that the crypto-assets traded on the platform are not investment contracts.
John Deaton, the lawyer defending XRP owners, said that more than 2,330 Coinbase customers have expressed a desire to join the exchange as “amici curiae”-independent experts who are not considered litigants.
“Many just don’t want the SEC or Coinbase to speak for them.. People are not happy that the agency can manipulate claims in court as if it’s protecting users in this way,” Deaton said.
The lawyer said that if there is sufficient interest on the part of users in the case, their views could be presented and considered in court. Coinbase lawyers are due to receive a response from the SEC on July 13, although the original deadline was set for August 7. In addition, instead of a pretrial hearing, the court will hold a pre-trial motions hearing, moving it from August 24 to July 13.
Deaton previously upheld a securities clarity bill introduced by U.S. lawmakers Darren Soto and Tom Emmer. As Deaton put it, this bill could protect the industry from the SEC’s nagging.