The legal dispute between Coinbase and the US Securities and Exchange Commission (SEC) takes a new turn as Coinbase responds to the commission’s petition regarding an interlocutory appeal in the case.
Coinbase Challenges SEC’s Position on Investment Contracts
On April 12, Coinbase seeks clarification from the US court on the formation of an investment contract without post-sale obligations, a crucial aspect in the ongoing case with the SEC.
The SEC argues against certifying an interlocutory appeal, citing the long-standing securities regulations like the Howey Test as sufficient. Coinbase asserts that the appeal addresses a unique issue regarding digital asset transactions and Howey’s application.
Coinbase accuses the SEC of sidestepping the core legal question by focusing on the application of the Howey Test to cryptocurrency transactions rather than addressing Coinbase’s specific petition.
Coinbase Aims for Legal Victory
Coinbase emphasizes the significance of the interlocutory appeal in its legal battle with the SEC, stating that a favorable outcome could invalidate a significant portion of the SEC’s complaints.
According to Coinbase’s petition, resolving the appeal could prevent extensive legal proceedings related to various token ecosystems, potentially saving significant resources for both parties.
Following the SEC’s charges against Coinbase on June 6, 2023, for allegedly operating without proper licenses, the outcome of this case involving the largest US exchange is anticipated to have far-reaching implications on crypto industry regulations in the country.
