Coinbase, the US’s biggest cryptocurrency exchange, is dealing with the challenges pushed by the US Securities and Exchange Commission (SEC). In the latest actions, the exchange filed for an interlocutory appeal in its ongoing case.
Is Coinbase waiting for a win?
The platform challenged a federal judge’s ruling that allowed the SEC’s case against them to proceed to trial. However, there are several key outcomes at stake if this Interlocutory appeal gets denied.
Experts suggest that this will lead to continued uncertainty in the crypto market. A lingering cloud of doubt still hovers over US based crypto markets. It has affected both centralized (CEX) and decentralized (DEX) exchanges in the country.
He added that the commission could use Judge Failla’s ruling. It can be applied as persuasive authority in other crypto related cases nationwide. On the other side, the Anti Crypto army and its congressional allies may leverage the ruling to argue against the requirement of crypto specific legislation. It enables the SEC’s continued crackdown on the industry.
It is important to note that the recent, SBF and Do Kwon cases are under scrutiny. Do Kwon might be the first crypto linked case to reach the Second Circuit on appeal.
However, this may not be the ideal case to address the crucial question of whether token transactions qualify as investment contracts under the Howey test.
The global digital assets market saw a major decline over the last 24 hours. The cumulative crypto market cap is down by 5% to stand at $2.3 trillion.
What’s the case about?
According to reports, Coinbase’s appeal focuses on a specific legal disagreement. It had challenged the commission’s authority to treat a digital asset transaction as an investment contract. This comes in when it’s not linked to any legal obligation from the asset’s original issuer.
The exchange here argues that the watchdog’s application of the Howey test to crypto assets. It has created doubt with different views among lawmakers, regulators, and the court.
“The application of Howey to digital asset transactions raises hard questions,” Coinbase stated in its appeal request. “The divergent judicial outcomes illustrate the point.”
The interlocutory appeals are seen as long shots. Here, Coinbase can make the way for the crypto industry to move closer to gaining legal clarity. If granted, the appeal could move the matter to the US Supreme Court. This move offers an opportunity to settle the regulatory classification of digital assets once and for all.
Coinbase, the US’s biggest cryptocurrency exchange, is dealing with the challenges pushed by the US Securities and Exchange Commission (SEC). In the latest actions, the exchange filed for an interlocutory appeal in its ongoing case. Is Coinbase waiting for a win? The platform challenged a federal judge’s ruling that allowed the SEC’s case against them […] Read MoreNews, Bitcoin, Coinbase, Crypto, Regulation
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