Ripple Ruling Boosts Coinbase's Legal Fight Against SEC

In Brief:

Coinbase renews its request for an interlocutory appeal in its legal battle with the SEC, citing the Ripple case as a significant factor.

The exchange argues that a simultaneous appeal with the SEC would offer a comprehensive view of the legal issues at stake, highlighting the "industry-wide significance" of the Howey Test's application.

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Ripple Ruling Strengthens Coinbase’s Appeal in Ongoing Legal Battle With SEC

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Coinbase is seeking court approval for an interlocutory appeal in its ongoing legal battle with the Securities and Exchange Commission (SEC). This request follows Coinbase's initial filing in April, as the exchange aims to have the Appellate Court review the application of the Howey Test, a crucial standard for determining securities classification.

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Coinbase's renewed appeal comes in response to the SEC's recent move to contest the Ripple decision. The regulator argued that the ruling contradicts Supreme Court precedents and securities regulations. In an October 4 letter to Judge Katherine Polk Failla, Coinbase urged the court to approve its motion to certify an interlocutory appeal against the SEC. If granted, this would allow the Second Circuit to address Coinbase’s legal concerns before the lower court makes a final decision.

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Coinbase's Legal Strategy and Industry Implications

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Coinbase argues that its appeal should proceed alongside the SEC’s appeal to provide the court with a comprehensive view of the SEC’s legal strategy. The exchange emphasizes that the issues presented by the Howey Test's application to secondary-market digital asset transactions have "industry-wide significance."

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Cryptocurrency lawyer James Murphy praised Coinbase’s legal strategy as a smart move, expressing surprise that the court has not yet ruled on the original motion. He believes the SEC’s appeal in the Ripple case could strengthen Coinbase’s argument moving forward.

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