SEC: Court Should Reject Coinbase’s Appeal

The SEC is urging a court to reject Coinbase’s attempt to appeal a judge’s decision allowing a lawsuit against the cryptocurrency exchange to proceed.

Coinbase had filed an interlocutory appeal, arguing that there’s a fundamental disagreement regarding how the Howey Test, a legal framework used to determine if an asset is a security, should be applied in their case.

The SEC, however, contends that there’s no valid basis for such an appeal. They argue that Coinbase’s business model might not align perfectly with existing regulations, but this doesn’t justify rewriting established legal precedent.

Additionally, the SEC points out the low success rate of interlocutory appeals, referencing their own failed attempt against Ripple in 2023.