Crypto News: Six law professors and scholars who are experts in securities law and related fields have filed amicus brief in support of crypto exchange Coinbase in the lawsuit against the U.S. Securities and Exchange Commission (SEC). The brief was filed after careful application of the securities laws and to help the court understand the history of the securities laws, they said in the filing to the US District Court, Southern District of New York. This comes a day after Senator Cynthia Lummis submitted an amicus brief in favor of the exchange.
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The amici are Stephen M. Bainbridge from UCLA, Tamar Frankel from Boston University, Sean J. Griffith from Fordham Law School, Lawrence Hamermesh from Widener University, M. Todd Henderson from University of Chicago Law School, and Jonathan R. Macey from Yale Law School. The law scholars have in the filing established a clear history of the definition of investment contracts.
Howey Criteria For Investment Contracts
The lawyers argued in the filing that with the Howey test, federal cases recognize that “investment contracts” require an expectation in the income, profits, or assets of a business. In conclusion, the law professors stated that the Court should stick with the settled meaning of the term ‘investment contract’ in interpreting it.
“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. In this section, we discuss some of these cases.”
Meanwhile, the law professors informed that the universities or law schools they work at have nothing to do with the amicus brief.
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