In a bid to address a critical legal deadlock within the crypto sector's clash with the U.S. Securities and Exchange Commission (SEC), Coinbase has filed for an interim appeal, aiming to delve into the core of the regulator's stance on digital assets. This move comes as the broader SEC case unfolds through the judicial system.
Coinbase's filing for an interlocutory appeal focuses on a specific legal disagreement, seeking separate consideration from the U.S. Court of Appeals for the Second Circuit. The company aims to challenge the SEC's ability to classify digital asset transactions as investment contracts, especially when disconnected from any legal obligations from the asset's original issuer.
The appeal contends that the application of the Howey test to cryptocurrency assets by the SEC has led to ambiguity regarding what constitutes a security. Coinbase argues that the divergent views among lawmakers and regulatory bodies highlight the complexity of the issue.
The SEC declined to comment on the appeal, stating that any response would be made through public filings to the court.
At the heart of the dispute is the classification of crypto transactions as investment contracts, falling under SEC jurisdiction. The resolution of this issue holds significant implications for the U.S. crypto industry, with Coinbase and others arguing that once a token enters secondary markets, it should be beyond the SEC's regulatory purview.
Judge Katherine Polk Failla's recent ruling allowed most of the SEC's case against Coinbase to proceed, underscoring the case's significance. If accepted, Coinbase's appeal would add another layer to the ongoing legal battle, potentially influencing the industry's trajectory in the United States.
Coinbase's legal battle with the SEC is pivotal and could shape the future regulatory framework for the crypto industry in the U.S. While the SEC has experienced both victories and setbacks in similar cases, the outcome of Coinbase's appeal could have far-reaching consequences.
Account Abstraction, Account Abstraction: From Chaos to Clarity A Practical Guide to Better User Experience Golden Finance, New Account Abstraction Paradigm Can Promote Mass Adoption of Cryptocurrency
JinseFinanceOnlyFake, an underground website, uses advanced neural networks to create lifelike fake IDs, challenging cybersecurity and ID verification, and posing significant risks to financial and online security.
MiyukiThe SEC's Twitter hack caused chaos in the crypto community, leading to a short-lived surge in Bitcoin prices. Despite the humor, the incident had severe consequences for traders liquidated due to fake news. It highlighted the vulnerability of the crypto market to misleading information and underscored the influence of media in shaping the narrative in the blockchain space. The turmoil prompted a reevaluation of trust in both Twitter and financial regulation, along with speculations about Elon Musk's involvement. Overall, Bitcoin remains resilient, unaffected by temporary fluctuations.
Cheng YuanAmid the Bitcoin ETF approval chaos, the SEC faces scrutiny over the mysteriously deleted approval tweet and alleged cybersecurity breach. Critics argue for a thorough investigation into the SEC's handling, emphasizing the need for clarity in its regulatory mandate. The ongoing battle among financial institutions to lower fees for spot Bitcoin ETFs adds another layer of competition to the unfolding situation.
SanyaTelcoin faces turmoil as its app halts operations after a $1.3 million crypto asset loss due to a cybersecurity exploit, leaving users and investors on edge.
Hui XinIn an act of cyber intrusion, a hacker infiltrated Vitalik's account, orchestrating a digital heist that absconded with $691,000 from unsuspecting users who had clicked on a corrupted link shared on his feed.
CatherineShe reiterated her warning that the Treasury Department may run out of measures to pay its debt obligations by June.
OthersA federal bankruptcy court judge heard hours of testimony on Voyager Digital’s proposed asset sale to Binance.US during a hearing that at one point turned into a shouting match.
TheBlockIronically, FTX was domiciled in the Bahamas, a former British colony, several of which remain deregulated offshore financial centers.
BeincryptoAlex Tapscott told Cointelegraph that bear markets lead to great ideas being formed and new businesses being built.
Cointelegraph
