Coinbase Submits Interlocutory Appeal in Legal Battle Against SEC

Coinbase has filed a motion appealing a court’s decision made last month, which allowed a lawsuit involving the SEC and the exchange to proceed without being dismissed.

The appeal claims that there are significant differences of opinion regarding the application of the Howey Test, a legal framework used to determine if an asset qualifies as a security, in digital asset transactions.

This is evidenced by the disagreement among lawmakers, SEC Commissioners, and courts themselves.

The appeal, which spans 27 pages, argues that the complexity of the subject matter and the divergent judicial outcomes demonstrate the difficulty of applying the Howey Test to digital assets.

However, it is unlikely that the interlocutory appeal, filed before the conclusion of a legal proceeding, will be granted.