Official SEC announcements or federal government publications

Coinbase Appeals SEC Ruling After Supreme Court Loss, Cites FIT21 Act and Howey Test

May 24, 2024, 04:36 PM

Coinbase is continuing its legal battle against the U.S. Securities and Exchange Commission (SEC) by filing new arguments in federal court. The crypto exchange is seeking an interlocutory appeal to the Second Circuit, challenging the SEC's authority and its interpretation of digital assets as securities and investment contracts. This move follows a recent Supreme Court loss for Coinbase. The company is emphasizing the importance of clarity in the crypto industry for the 52 million Americans who own digital assets. Coinbase's appeal also highlights the recent passage of the FIT21 Act by the House of Representatives, which underscores the growing legislative divide over the regulation of digital assets. Lawyers for Coinbase argue that the question of whether digital assets traded on exchanges are securities could shape or distort a multi-trillion-dollar industry. Additionally, Coinbase claims that the SEC is trying to sidestep the Howey test in its latest appeal attempt.