Several U.S. state attorneys general and pro-crypto groups have filed amicus briefs opposing the SEC’s case against Kraken.

State Attorneys General Oppose SEC

On Feb. 29, a coalition of attorneys general from Montana, Arkansas, Iowa, Mississippi, Nebraska, Ohio, South Dakota, and Texas submitted a brief challenging the SEC’s position in the case. Coinbase's Chief Legal Officer, Paul Grewal, noted that the states criticized the SEC’s "ecosystem" theory as unlawful and potentially harmful to their citizens. They emphasized the risk of SEC actions preempting state laws that regulate digital assets as money transmitters.

Pro-Crypto Groups Join Opposition

Pro-crypto organizations, including the Chamber of Digital Commerce and the Blockchain Association, also filed briefs against the SEC. The Chamber of Digital Commerce argued that the SEC’s broad application of securities laws threatens blockchain innovation, urging the court to limit the SEC's regulatory scope. Similarly, the Blockchain Association and the DeFi Education Fund argued that the SEC’s inconsistent and overreaching approach creates confusion in the industry and exceeds its legislative authority.