{"id":822073,"date":"2025-01-24T05:14:20","date_gmt":"2025-01-24T11:14:20","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/24\/coinbase-seeks-court-ruling-to-clarify-crypto-trades-and-challenge-secs-authority\/"},"modified":"2025-01-24T05:14:20","modified_gmt":"2025-01-24T11:14:20","slug":"coinbase-seeks-court-ruling-to-clarify-crypto-trades-and-challenge-secs-authority","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/24\/coinbase-seeks-court-ruling-to-clarify-crypto-trades-and-challenge-secs-authority\/","title":{"rendered":"Coinbase Seeks Court Ruling to Clarify Crypto Trades and Challenge SEC\u2019s Authority"},"content":{"rendered":"
\n
<\/header>\n
\n
\n
\n
<\/figure>\n<\/div>\n
\n

As per a latest Bloomberg report<\/a>, Coinbase Inc. asked the Second Circuit to say that digital token trades on its platform aren\u2019t transactions governed under federal securities law.<\/p>\n

\n

\u201cThere is no more pressing issue in securities law today than the scope of the Securities and Exchange Commission\u2019s authority to regulate secondary trades of digital assets,\u201d Coinbase said in its petition docketed in the US Court of Appeals for the Second Circuit. The appeals court could \u201cclear away the cloud that currently hangs over the cryptocurrency market,\u201d it noted<\/strong>.<\/p>\n<\/blockquote>\n

Second Circuit Ruling Could Accelerate Resolution
<\/h2>\n

Notably, A decision by the Second Circuit stating that token trades aren\u2019t securities transactions could speed up the end of the SEC\u2019s case against Coinbase and ease US crypto regulations<\/a>. The Trump administration has indicated that it will provide crypto companies with greater regulatory flexibility.<\/p>\n

The case gives the appeals court a chance to weigh how it should apply the \u201cHowey test\u201d to crypto transactions. Coinbase argued in its brief that trades on its platform are not investment contracts, but asset sales. The US District Court for the Southern District of New York granted Coinbase\u2019s request to seek an immediate appeal earlier this month in an SEC enforcement suit.\u00a0<\/p>\n

The US Chamber of Commerce and Blockchain Association<\/a> have filed briefs supporting the Second Circuit\u2019s review of the Coinbase case. They highlighted that the lack of clarity on whether crypto trades are investment contracts could have negative effects, as federal courts remain divided on the issue.<\/p>\n