Cryptocurrency exchange Coinbase has filed a reply memorandum supporting its motion to certify an interlocutory appeal in its lawsuit against the U.S. Securities and Exchange Commission (SEC), which alleges that certain digital asset transactions conducted by Coinbase constitute the sale of unregistered securities. Coinbase’s chief legal officer, Paul Grewal, explained that the crypto exchange’s position “remains the same,” which is “To push for clarity for our industry and the 52 million Americans who own crypto, and against the SEC’s overreach beyond the authority it’s been given from Congress.”
Coinbase Continues to Fight for Crypto Clarity, Challenging SEC Overreach in Court
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The core issue is whether a digital asset transaction without post-sale obligations can be considered an “investment contract” under the Howey test. Coinbase argues that this novel legal question has significant implications for the multi-trillion-dollar cryptocurrency industry. The SEC opposes the motion, suggesting the question is not clear and that other issues addressed by the order do not warrant certification. Coinbase counters that the question is clear and pivotal, warranting immediate appellate review to guide the litigation and the broader industry.
