Coinbase is seeking an interlocutory appeal in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). This petition marks the latest development in a closely watched trial that dates back to June 2023. movement Submitted April 12, the U.S. exchange seeks constitutional clarification of a specific “determining question of law” as it combats Commission allegations that it operates as “a securities exchange, broker-dealer and clearing agency.” not recorded”.
In general, Coinbase appears to be deploying another strategy to undermine the SEC’s post-court petition. denied the exchange’s motion to dismiss the charges in question. Coinbase, which ranks as America’s largest cryptocurrency exchange with 73 million users, has consistently emphasized the need for a clear cryptocurrency regulatory framework, while strongly criticizing continued crackdowns of the SEC against the digital assets sector.
Coinbase argues for interlocutory appeal
Normally, judicial appeals are heard after a trial or a final decision of a lower court, but in the case of interlocutory appeals, certain issues or decisions are appealed before the conclusion of the entire case. ‘affair. In SEC v. Coinbase, the defendants seek a review of the meaning of an investment contract in terms of crypto transactions.
Coinbase said this petition verifies all legal requirements for an interlocutory appeal. First, the exchange asserts that there is a “determining question of law”, which clarifies whether an investment contract can be concluded on the basis of transactions without post-sale obligations.
Additionally, Coinbase highlights aspects of “substantial grounds for difference of opinion” on this issue, particularly regarding the application of the Howey test to cryptocurrency transactions. Finally, the American exchange asserts that the review of this question could potentially neutralize the main allegations of the SEC in the lawsuit opposing the two parties, hence the need for this appeal.
Thereafter, the court will now consider this application for interlocutory appeal and, upon certification, submit the controlling question of law to an appellate court for appropriate resolution or guidance.
Vital Call for US Crypto Industry – Coinbase CLO
Commenting on Coinbase’s latest petition, the exchange’s chief legal officer Paul Grewal said declared that the motion for interlocutory appeal is important for the crypto industry, especially amid the SEC’s “unfair” enforcement actions due to the lack of a legal regulatory framework.
Grewal said:
We are requesting that this case be heard on appeal sooner than usual because it is essential for our industry. The SEC’s action against us and other digital asset companies goes far beyond the legal authority granted by Congress and casts an unfair pall over U.S. digital asset innovation.
The crypto lawyer also stated his confidence in the sustainability and growth of digital assets while reiterating Coinbase’s commitment to clear operating rules and regulations for the US crypto industry.
Total crypto market cap valued at $2.239 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from CNN, chart from Tradingview
