Coinbase Global Inc. shouldn’t be ruled a “statutory seller” of securities because it doesn’t fit the criteria and broad negative ramifications would ensue, a cryptocurrency industry group told a federal court.

Ruling against Coinbase on the issue would drive trading platforms offshore, harming consumers and US competitiveness, the Digital Chamber said Wednesday in a brief to the US District Court for the Southern District of New York. The friend of the court brief—by a digital asset and blockchain trade association that describes itself as the oldest and largest in the industry—supports Coinbase’s request for a definitive legal ruling, or …