Coinbase Wants Court to Rule Crypto Trades Are Not Securities

Coinbase has submitted a formal request to the US Second Circuit Court of Appeals to seek clarification on whether cryptocurrency should be subject to federal securities laws.

In their filing on Tuesday, the legal team at Coinbase stressed the significance of this case in determining how digital assets should be treated in secondary trading.

They argued that this issue requires urgent attention from the courts due to its potential impact on the entire crypto industry. “This case is of utmost importance to the crypto industry, consumers, and financial institutions, as well as lower courts that need guidance,” the exchange stated.

Coinbase stated that the question at hand is an ideal opportunity for the court to provide clarity and establish clear guidelines for the multi-trillion-dollar cryptocurrency industry.

Using the Howey test as a reference, Coinbase argues that transactions on its platform should not be considered securities under federal law.