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In its ongoing lawsuit with the SEC, Coinbase has filed a reply in support of its motion to certify an interlocutory appeal with the 2nd Circuit Court. Paul Grewal, Coinbase's Chief Legal Officer, highlighted this new development on X (formerly Twitter).
According to Grewal, the company's position remains steadfast: advocating for regulatory clarity for the crypto industry and the 52 million Americans who own digital assets, while challenging the SEC’s perceived overreach beyond its congressional mandate.
The crux of Coinbase’s appeal centers on whether the SEC can regulate digital asset transactions as "investment contracts" without any contractual elements involved. This issue is not unique to Coinbase; the SEC itself acknowledged the question's "industry-wide significance" and the substantial differences in opinion, when requesting similar relief in the Ripple case.
From the outset, Coinbase has attempted to engage the SEC in a constructive dialogue to establish a balanced regulatory framework for crypto innovation within the U.S. However, these efforts have been met with resistance, inconsistent positions and litigation, Grewal noted in a thread of tweets.
Tomiwabold OlajideIn its recent filing, Coinbase emphasizes the urgency of addressing this critical legal question through an interlocutory appeal, highlighting its importance for the future of the crypto industry. Earlier this week, the House recognized the necessity for clear regulatory rules, reinforcing Coinbase's call for clarity as well.
Regardless of the timeline, Grewal stated that Coinbase was determined to pursue this matter to its conclusion, aiming to secure regulatory clarity and push back against "overzealous regulators." The company asserts that such efforts are essential for the benefit of the 52 million Americans involved in crypto.
As the legal battle continues, the outcome of this current phase in the lawsuit could have profound implications for the entire cryptocurrency industry.
Alex Dovbnya
Vladislav Sopov
Dan Burgin