Krutika Adani
In a pivotal development, a federal judge granted Coinbase permission to file an interlocutory appeal in its ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC).
The appeal will focus on whether an actual contract is necessary for a transaction to be considered an investment contract under the Howey Test.
In its 2023 lawsuit, the SEC accused Coinbase of running as an unregistered exchange, broker, and clearing agency, while raising concerns about its staking and wallet services.
The outcome of this appeal could have broad implications for how crypto assets are regulated in the U.S. The decision will likely clarify how the Howey Test applies to digital currencies, shaping the future of cryptocurrency regulations.