2024

Impact

April

<p>The post <a href="https://coinpedia.org/news/coinbase-battles-sec-seeks-crucial-answer-that-could-transform-crypto/" rel="noopener noreferrer nofollow">Coinbase Battles SEC: Seeks Crucial Answer That Could Transform Crypto</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>Crypto exchange Coinbase filed a response to the SEC’s comments on its interlocutory appeal request. Coinbase is asking the SEC to clarify whether digital asset transactions without obligations on the original issuer, qualify as investment contracts under SEC regulations.</p>
<h2 class="wp-block-heading" id="h-coinbase-filed-a-savvy-response">Coinbase Filed a Savvy Response</h2>
<p>On May 24, <a href="https://assets.ctfassets.net/sygt3q11s4a9/5jEAsvCE3W61n9TSvZgHwL/aa1f286f3afb6f02045da78765250504/2024.05.24_-_Dkt._128_-_Reply_in_Supp._of_Cert..pdf" rel="noopener noreferrer nofollow">Coinbase filed a memorandum</a> supporting its appeal against a specific ruling in an ongoing case with the SEC. This document responds to the SEC’s opposition to Coinbase’s initial appeal request.&nbsp;</p>
<p>Coinbase initially <a href="https://coinpedia.org/news/coinbase-vs-sec-coinbase-requests-for-interlocutory-appeal-on-investment-contracts-ruling/" rel="noopener noreferrer nofollow">filed the appeal</a> on April 12, contesting a March 27 ruling that the SEC had sufficient grounds to claim that Coinbase’s staking program was an unregistered securities offering.</p>
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   <p lang="en" dir="ltr">We just filed our reply in our request to file an interlocutory appeal with the 2nd Circuit. Unlike <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@SECGov</a>, <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@coinbase</a>’s position remains the same: To push for clarity for our industry and the 52 million Americans who own crypto, and against the SEC’s overreach beyond the… <a href="https://t.co/BfaApLzVSh" rel="noopener noreferrer nofollow">https://t.co/BfaApLzVSh</a></p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1793991568824971295?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">May 24, 2024</a>
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<p>Coinbase’s main <a href="https://x.com/iampaulgrewal/status/1793991568824971295" rel="noopener noreferrer nofollow">argument in the appeal</a> is that the core issue is whether an investment contract requires a contractual undertaking. Coinbase argues that, according to SEC regulations, digital asset transactions without post-sale obligations to the original issuer should not be considered investment contracts.</p>
<p>The SEC, opposing Coinbase’s appeal contends that no court has required a post-sale contractual undertaking for the application of the Howey test, which determines what constitutes a security.</p>
<h2 class="wp-block-heading" id="h-sec-s-take">SEC’s Take!!!</h2>
<p>The SEC, opposing Coinbase’s appeal contends that no court has required a post-sale contractual undertaking for the application of the Howey test, which determines what constitutes a security.</p>
<p>Furthermore, the SEC has argued that Coinbase’s request lacks legal merit. The commission contends that the <a href="https://coinpedia.org/crypto-live-news/supreme-court-rules-against-coinbase-in-sweepstakes-case/" rel="noopener noreferrer nofollow">court has already dismissed</a> Coinbase’s arguments and that the latest appeal request also fails to establish sufficient legal grounds. The SEC maintains that there is no doubt the appeal should be halted.</p>
<h2 class="wp-block-heading" id="h-potential-industry-impact">Potential Industry Impact</h2>
<p>The outcome could affect other SEC actions in the cryptocurrency industry. As the courts, including Judge Katherine Polk Failla, will decide if the appeal can proceed.&nbsp;</p>
<p>However, she had previously denied Coinbase’s request to dismiss the SEC’s original case. Meanwhile, the resolution of this case could set a precedent that shapes the future of digital asset regulation.</p>

Coinbase Battles SEC: Seeks Crucial Answer That Could Transform Crypto

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