Coinbase files appeal on specific issues in SEC case

Coinbase is seeking an appeal on a specific issue in its case with the U.S. Securities and Exchange Commission (SEC), its long-running legal nemesis.

This lawsuit began in June 2023 and attracted much attention. In an appeal motion filed on April 12, the U.S. exchange sought to clarify constitutional legal issues over allegations that it operated as an "unregistered securities trading venue, broker-dealer, and clearing agency."

Overall, it appears Coinbase is pursuing another tactic to derail the SEC petition after the court denied the exchange’s motion to dismiss the allegations.

Coinbase, the largest U.S. cryptocurrency exchange with 73 million users, has been vocal about the need for a clear regulatory framework for cryptocurrencies while sharply criticizing the SEC’s ongoing crackdown on the digital asset industry.

Coinbase Files Appeal of Specific Issues

Typically, a legal appeal occurs after a trial has concluded or a lower court has issued a final decision, but in the case of a staged issue appeal, the parties appeal specific issues or decisions before the entire case is concluded.

In the SEC v. Coinbase case, the defendants are seeking a review of the meaning of investment contracts in cryptocurrency transactions.

Coinbase said the appeal met all legal requirements. First, the exchange claimed there was a "controlling legal issue," That is, whether an investment contract can be formed on the basis of a transaction without post-sale obligations.

Additionally, Coinbase highlighted “substantial grounds for disagreement” on the issue, specifically regarding the application of the Howey test to cryptocurrency trading. Finally, the US exchange said a review of the issue could offset the SEC's main allegations in both sides' court cases, necessitating an appeal of the case.

Next, the court will review the request for appeal on this particular issue and, upon certification, the controlling legal issues should be referred to the Court of Appeal for appropriate resolution or guidance.

Coinbase Chief Legal Officer's Appeal Crucial to U.S. Cryptocurrency Industry -

Commenting on Coinbase’s latest appeal motion, the exchange’s chief legal officer Paul Grewal said that issue-specific appeal motions are critical for the cryptocurrency industry, especially in the face of “unfair” enforcement by the SEC due to the lack of a legal regulatory framework. action.

Grewal said:

“We are asking for an earlier appeal than usual because it is critical to our industry. The SEC’s actions against us and other digital asset companies go far beyond the laws Congress granted us. This approach casts an unfair shadow on the innovation of digital assets in the United States.”

The cryptocurrency lawyer also expressed confidence in the sustainability and growth of digital assets, while reaffirming Coinbase’s commitment to developing clear operating rules and regulations for the U.S. cryptocurrency industry.

|Cryptocurrency total market capitalization on daily chart is $2.239 trillion

Source: Tradingview.com Cryptoasset total market capitalization chart

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