This case is about the rule of law and whether the most powerful entity in our society—the United States Government—must abide by the law when it brings its power to bear against a person. In this case, the Securities and Exchange Commission (“SEC”) is trying to seize broad regulatory jurisdiction over a massive new industry via an enforcement action against a 32-year- old former Coinbase employee and his kid brother. An enforcement action against individual people—particularly ones who are already occupied with federal criminal proceedings at the other end of the country—is not how major questions of law that loom over entire industries should be resolved. Yet that is how the SEC has chosen to proceed.
Source: Defendants Ishan and Nikhil Wahi’s Motion to Dismiss