Coinbase Seeks Court Ruling to Clarify Crypto Trading Regulations

Coinbase has taken its legal battle with the SEC to the U.S. Court of Appeals, seeking a clear ruling on whether cryptocurrency trades in secondary markets qualify as securities.

The exchange argues that resolving this issue is vital for the digital asset industry, which faces regulatory inconsistencies and unclear oversight.

The SEC filed a lawsuit against Coinbase in June 2023, accusing it of operating as an unregistered securities exchange and failing to comply with securities laws.

Coinbase counters that transactions on its platform are simple asset sales, not securities deals, as they do not involve ongoing commitments or rights tied to issuers, unlike traditional securities such as stocks or bonds.

READ MORE:

CME Addresses Rumors of XRP and Solana Futures After Website Error

In its latest appeal, Coinbase emphasized the importance of creating consistent legal standards for the industry, pointing to conflicting rulings in other cases involving Ripple Labs and Terraform Labs.

The exchange believes this case offers a prime opportunity to address the ambiguity surrounding secondary market crypto transactions and provide much-needed clarity for the future of digital asset trading.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.