Cryptocurrency exchange Coinbase continues to fiercely oppose the US Securities and Exchange Commission (SEC), challenging its authority over cryptocurrency transactions.
Coinbase previously filed a petition with the court seeking permission to appeal the SEC's wording for an investment contract.
Coinbase's representative, Chief Legal Officer Paul Grewal, brought the definition of an investment contract to the court's attention. The exchange then requested permission to file an interlocutory appeal, CoinGape reported.
The disputed interpretation of the investment contract relates to whether it requires a binding contractual agreement. Coinbase believes it does, while the SEC disagrees. The resolution of this controversial issue could lead to important changes for all members of the crypto industry and adjust the regulatory environment in the US for digital asset services companies.
Coinbase representatives emphasized the importance of resolving this issue as soon as possible, which is paramount in a crypto environment characterized by numerous innovations. Paul Grewal stated that the SEC's intervention is far beyond its authority, while also stopping all crypto innovation in the US.
The Coinbase executive had previously criticized the SEC's actions and interference, as well as its formulation of securities for all cryptocurrencies.
Interestingly, in the SEC's case against Ripple, the commission made comments similar to Coinbase's arguments. At the time, the regulator acknowledged the importance of the issue to the industry and the existence of a "controlling question of law."
Coinbase has recently faced legal challenges due to the SEC's allegations, but it continues to grow and strengthen its position in the crypto space among the world's leading exchanges. Coinbase is confident in the great opportunities that cryptocurrencies will bring. At the same time, the exchange is committed to regulatory clarity that protects the interests of cryptocurrency companies, its own, as well as users who invest in crypto assets.
There are also positive developments in the standoff with the SEC, as the court sided with Coinbase and ruled that secondary sales of cryptocurrencies do not qualify as securities.
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