tl;dr
The US Securities and Exchange Commission (SEC) opposes Coinbase’s motion for an interlocutory appeal, criticizing Judge Analisa Torres’s decision in the Ripple case. The SEC argues that the court should not reconsider the application of securities law to digital assets. Coinbase contends that the S...
The US Securities and Exchange Commission (SEC) opposes Coinbase’s motion for an interlocutory appeal, criticizing Judge Analisa Torres’s decision in the Ripple case. Coinbase contends that the SEC’s application of the Howey test to cryptocurrency assets has muddled the definition of securities, heavily leaning on Judge Torres’s ruling in the Ripple case. The SEC rebuffs Coinbase’s motion, stating that no court has followed Judge Torres’s decision and argues that an interlocutory review is not justified merely because Coinbase proposes a new legal standard. Coinbase’s Chief Legal Officer, Paul Grewal, responds to the SEC’s motion, highlighting differing arguments presented by the SEC in a similar appeal against Ripple Labs. The ongoing legal dispute between the SEC and Coinbase takes another step forward with this filing. The US Securities and Exchange Commission (SEC) opposes Coinbase’s motion for an interlocutory appeal, criticizing Judge Analisa Torres’s decision in the Ripple case. The SEC argues that the court should not reconsider the application of securities law to digital assets. Coinbase contends that the SEC’s use of the Howey test has blurred the definition of securities, citing Judge Torres’s ruling on XRP. However, the SEC rejects Coinbase’s motion, stating that no court has followed Judge Torres’s decision and that Coinbase’s attempt to frame an interlocutory appeal around a “controlling question” is a bid to manipulate the interpretation of the issue. The SEC further argues that an interlocutory review is not justified merely because Coinbase proposes a new legal standard and suggests that Coinbase may simply dislike the longstanding answer provided by the courts. Coinbase’s Chief Legal Officer responded, highlighting differing arguments presented by the SEC in a similar appeal against Ripple Labs. The ongoing legal dispute between the SEC and Coinbase continues. The US Securities and Exchange Commission (SEC), in its opposition to Coinbase’s motion for an interlocutory appeal, criticized Judge Analisa Torres’s decision in its case against Ripple. In a filing dated May 10, the SEC contended that the court should not entertain Coinbase’s bid to reassess the application of securities law to digital assets. Coinbase, in its plea for an Interlocutory review, contends that the SEC’s application of the Howey test to cryptocurrency assets has muddled the definition of securities. The exchange heavily leans on Judge Torres’s ruling in the Ripple case. At the time, the judge deemed the XRP token non-securities and its programmatic sales on exchanges not constituting investment contracts. However, the SEC rebuffs Coinbase’s motion, stating that no court has followed Judge Torres’s decision. The regulator asserts that Coinbase’s attempt to frame an interlocutory appeal around a “controlling question” is a bid to manipulate the interpretation of the issue. Coinbase’s Chief Legal Officer, Paul Grewal, responded that the SEC’s motion contradicts itself. Grewal shared screenshots showing differing arguments presented by the SEC in a similar appeal against Ripple Labs. Meanwhile, the ongoing legal dispute between the regulatory agency and the cryptocurrency exchange takes another step forward with this filing. Previously, the agency accused Coinbase of operating as an unregistered exchange and raised concerns about its staking program potentially violating securities laws.
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