Coinbase files fresh reply in legal battle with SEC after ETH ETF and FIT21 approval

Source Fxstreet
May 25, 2024 00:58
  • Crypto exchange Coinbase has filed a response to the SEC's comment on its interlocutory appeal request.
  • Coinbase initially requested an interlocutory appeal last month, seeking to know if securities laws appealed to crypto. 
  • ETH ETF and FIT21 approval may play a major role in deciding the outcome of the SEC's legal battle with Coinbase.

Coinbase (COIN) issued a response on Friday to its initial interlocutory appeal for answers regarding securities question in battle that has lingered with the Securities & Exchange Commission (SEC).

Read more: XRP set for rally after Coinbase listing in New York

Coinbase responds to SEC

Crypto exchange Coinbase filed a response to the SEC's comment on its interlocutory appeal request on Friday. The exchange continues to probe for an appeal with the court, stating that the question asked holds vital ground for the entire cryptocurrency industry.

“Certification is warranted to resolve the novel and controlling question of law presented, to guide the conduct of this litigation, and to bring much-needed clarity to the burgeoning crypto industry” the response states.

An interlocutory appeal is a party's application to an appellate court challenging a non-final trial court order that decides an issue but does not result in a final judgment.

Coinbase initially requested an appeal to the US Court of Appeal Second Circuit last month, seeking to know whether the SEC may regulate “investment contracts” digital asset transactions that don’t involve anything contractual. This question, according to the exchange, is key in these defining times for the entire crypto industry.

Also read: US House of Reps passes bill aiming to regulate cryptocurrencies

“We’re asking to take this key legal issue up on appeal earlier than normal because it's critical to the crypto industry. Earlier this week the House recognized the need for clear rules, and we’re seeking clarity in the Courts as well,” said Paul Grewal, Chief legal officer at Coinbase.

The SEC earlier released a counter-response to Coinbase request for an interlocutory appeal on May 10, stating that at least some of the transactions on the exchange platform and through related services constituted investment contracts and that the question presented by Coinbase was unnecessary.

The tables however may be turning against the SEC, especially with the passing of the FIT21 bill in the House of Representatives and the regulator approving spot ETH ETFs on Thursday.

With many suggesting ETH's potential classification as a security ending with the ETF approval, the courts may be forced to look into the appeal requested by Coinbase.

Read more: SEC approves spot Ethereum ETFs after shocking U-turn

The interlocutory appeal will require acceptance from the appellate court. Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York previously denied Coinbase's motion to have the SEC's initial lawsuit against the exchange dismissed. The exchange also lost a case to the Supreme Court on Thursday over its 2021 Dogecoin sweepstakes.

In conclusion, Coinbase has said it would exercise patience until it gets clarity from the SEC over crypto assets regulations.

“We’re committed to seeing this through no matter how long it takes to get clarity for the entire industry and push back against overzealous regulators. It’s what the 52 million Americans who own crypto deserve," said Paul Grewal.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Will Ethereum Skyrocket? Crypto Analyst Predicts $6,000 By SeptemberPopular crypto analyst degentrading (@degentradingLSD) has made a bold prediction that Ethereum will reach $6,000 by September 2024. This prediction comes in response to an analysis by Mechanism
Author  NewsBTC
Popular crypto analyst degentrading (@degentradingLSD) has made a bold prediction that Ethereum will reach $6,000 by September 2024. This prediction comes in response to an analysis by Mechanism
goTop
quote