2024

Test

April

Attorneys for Coinbase urged Southern District of New York judge Katherine Failla to reconsider an interlocutory appeal filed on behalf of the exchange in April 2024 — citing the Securities and Exchange Commission's (SEC) recent notice of appeal in the Ripple lawsuit.
According to an Oct. 5 letter, lawyers for Coinbase argued that the SEC's appeal is an admission that the criteria listed in the regulator's Howey Test — a set of conditions that must all be fulfilled to classify a financial instrument as a security — were ambiguous and warranted closer examination.
<figure>
 <img alt="Coinbase, Ripple, SEC, Court" src="https://s3.cointelegraph.com/uploads/2024-10/01925de8-df2a-7d3a-b1a6-858df9f46232" title="">
 <figcaption style="text-align: center;">
 Lawyers for Coinbase send letter to court urging approval of an interlocutory appeal first filed in April 2024. Source: Eleanor Terrett.
 </figcaption>
</figure>
The attorneys also asserted that the appeal signifies the "industry-wide significance" of the application of the Howey test, warranting a more thorough legal review of the facts in the ongoing Securities and Exchange Commission vs. Coinbase Inc. and Coinbase Global lawsuit. Coinbase's legal counsel stressed:
<blockquote>
 "The SEC has conceded, and now reconfirms by its appeal in Ripple, that the issues presented by Howey's application to secondary-market digital asset transactions are of "industry-wide significance." Prompt and complete appellate review is urgently needed."
</blockquote>
Financial services lawyer James Murphy <a data-ct-non-breakable="null" href="https://x.com/MetaLawMan/status/1842594066191782086" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/MetaLawMan/status/1842594066191782086">remarked</a> that it was highly unusual that the court did not rule on Coinbase's motion for interlocutory appeal when it was filed in April — noting that these motions are usually arbitrated quickly. The attorney also praised the legal team's strategy of leveraging the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-files-notice-appeal-ripple-lawsuit" rel="null" target="null" text="null" title="null">recent SEC appeal</a> in the Ripple case to push for an interlocutory appeal.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-delist-non-compliant-stablecoins-mica" rel="null" target="null" text="null" title="null">Coinbase to delist non-compliant stablecoins under EU MiCA rules</a>
<h2 id="other-recent-developments-in-sec-vs-coinbase">Other recent developments in SEC vs. Coinbase</h2>
In a Sept. 18 filing, the Securities and Exchange Commission petitioned the court for a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-coinbase-discovery-court-documents" rel="null" target="null" text="null" title="null">February 2025 extension</a> to produce discovery documents for Coinbase. The documents were initially scheduled to be presented to the court by Oct. 18, 2024.
On Sept. 24, a panel of judges described the SEC's refusal to provide Coinbase with clear rules and guidelines for digital assets — a request the exchange made to the government regulator in 2022 — as <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/court-questions-sec-explanation-denying-coinbase-rulemaking-petition" rel="null" target="null" text="null" title="null">lacking clear rationale</a>.
More recently, in Oct. 2024, Coinbase petitioned the court to compel the Commodities Futures Trading Commission (CFTC) to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/coinbase-cftc-motion-to-compel-subpoenadocs-defend-sec-suit" rel="null" target="null" text="null" title="null">release its communications with token issuers</a>, which the Coinbase legal team believes will provide clarity on which digital assets qualify as securities.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/godzilla-vs-kong-can-sec-prevail-against-crypto-legal-firepower/" rel="null" target="null" text="null" title="null">Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower</a>

Coinbase urges court to reconsider appeal, cites SEC vs Ripple

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Cointelegraph

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