Bitrabo Editorial
The legal battle between the United States Securities and Exchange Commission (SEC) and Coinbase, a leading cryptocurrency exchange, escalates as the SEC opposes Coinbase’s motion for an interlocutory appeal following a judge’s denial of its case dismissal request.
In June 2023, the SEC sued Coinbase for running as an unregistered securities exchange and broker. The SEC now urges the court to reject Coinbase’s appeal.
SEC Dismisses Coinbase’s Claim of Disagreement
The SEC responded to Coinbase’s interlocutory appeal filing, asserting that there is no substantial basis for differing opinions, particularly regarding the application of the Howey Test to determine asset classification. The SEC argued that Coinbase’s attempt to reshape established legal principles to suit its interests does not warrant early appeal certification.
Judge Katherine Polk Failla, who rejected Coinbase’s dismissal request, will decide on the interlocutory appeal. If approved, the appeal would move to the US Court of Appeals for the Second Circuit.
Coinbase CLO Counters SEC’s Response
Coinbase’s Chief Legal Officer, Paul Grewal, responded to the SEC’s objections on an online platform, criticizing the SEC for inconsistent legal stances compared to previous cases like Ripple. Grewal emphasized the lack of consensus on Howey and digital assets even among district judges within the same courthouse.
While the outcome of this legal dispute remains uncertain, ongoing court battles between the US SEC and Coinbase persist, including Coinbase’s lawsuit against the SEC for regulatory ambiguity.