Lawyers for Coinbase argued that a recent U.S. Supreme Court ruling on the cancellation of student debt aids Coinbase in its fight against accusations of operating a non-registered security venue .

The Securities and Exchange Commission formally charged Coinbase on June 6 with violating federal securities laws. The exchange claims that the lawsuit is an attempt by the regulators to exercise “extraordinary wholesale powers” over the $1 trillion industry of digital assets.

This is a reference to a Supreme Court decision on June 30th, just days after Coinbase had sent its opening defense. The Court ruled that the Secretary for Education exceeded his authority in canceling $430 billion of student debt. This ruling reinforced a legal doctrine which says that government agencies must have clear support from Congress when making a major decision with economic or political implications.

Coinbase claims that the “closely similar” case, Biden v. Nebraska cited, will have an impact on its own because lawmakers have not yet set clear rules for cryptocurrency.

Coinbase’s filing stated that Congress had not delegated any regulatory authority to the SEC and was actively considering the regulatory structure for the digital assets industry.

U.S. legislators are considering a variety of digital asset laws. This includes a bipartisan bill that was recently revived by Senators Cynthia Lummis and Kirsten Gillibrand (both D-N.Y.). Kirsten Gillibrand, a Democrat from New York who favors the Commodity Futures Trading Commission as the authority holder.

The SEC has argued digital assets, including tokens linked to Solana(SOL), Cardano(ADA), and Polygon/MATIC constitute regulated securities and that Coinbase was aware that it violated the law when it failed to register its activity. Similar allegations have been made by the regulator against Binance, and bittrex. The regulator’s jurisdiction is not recognized by all three companies.

In a New York courtroom, the parties will meet on Thursday to conduct a preliminary hearing. This trial could last for many years. In another case, Coinbase scored a Supreme Court win after judges ruled a lawsuit brought by a user against the exchange couldn’t be pursued until an appeal.

Read more about Coinbase’s lawsuit against the SEC

Sheldon Reback is the editor.