Coinbase, the largest crypto exchange in the US, is appealing a court decision in its ongoing case with the Securities and Exchange Commission (SEC).
Interlocutory Appeal
Coinbase is asking the court to review a specific legal question before the trial is over. This type of appeal is called an interlocutory appeal.
The Question
The question Coinbase wants the court to review is whether a certain type of crypto transaction can be considered an investment contract. The SEC claims it is, while Coinbase argues it’s not.
Why it Matters
Coinbase believes that if the court agrees with them, it could weaken the SEC’s case against them. The exchange also argues that it’s important for the crypto industry to have clear rules and regulations.
Coinbase’s Argument
Coinbase claims that the SEC’s interpretation of the law is too broad and that it would stifle innovation in the crypto industry.
SEC’s Actions
The SEC has been cracking down on crypto companies, arguing that many of them are operating illegally. Coinbase has criticized the SEC’s actions, saying they are unfair and based on a lack of clear regulations.
Next Steps
The court will now decide whether to grant Coinbase’s request for an interlocutory appeal. If the court agrees, the question will be sent to an appeals court for a ruling.
