Amanda Tuminelli has supported US cryptocurrency exchange Coinbase in a legal battle with the US Securities and Exchange Commission (SEC). The lawyer asked the court to understand the technological nuances of the crypto industry, as court rulings greatly affect industry developers.
Tuminelli explained: Coinbase is not only a popular cryptocurrency exchange, but also a software developer and IT services provider. Developing software or creating applications for a cryptocurrency wallet is not considered brokerage activity. To be a broker, an organization must execute securities transactions by acting as an intermediary for other users. And passive software can’t act as an intermediary.
Coinbase does not control user assets, manage customer funds or pool assets through a cryptocurrency wallet, Tuminelli continued. Private keys for wallets are stored directly on users’ devices, not with Coinbase or any third party. The user is in control of their own assets, and makes their own decisions regarding transactions. The wallet software simply allows the desired transaction to be transferred to the blockchain.
Wyoming State Senator Cynthia Lummis spoke in support of Coinbase. She believes the SEC should have focused on developing rules to regulate the industry with Congress rather than suing crypto companies.
In April, DeFi Education Fund submitted an expert report to the court regarding cryptomixer Tornado Cash. The foundation called the U.S. Treasury Department’s sanctions against Tornado Cash improper and in violation of the constitution.