Cryptocurrency alternate Coinbase has requested a United States court docket to scrutinize a selected “controlling query” raised by the U.S. Securities and Trade Fee (SEC) in its ongoing lawsuit in opposition to the alternate.
“The query introduced right here is unencumbered by factual disputes and due to this fact ripe for instant evaluation,” Coinbase argued in an April 12 submitting with the U.S. District Courtroom for the Southern District of New York.
Coinbase chief authorized officer Paul Grewal defined in an April 12 put up on X that the “controlling query” revolves round whether or not an funding contract requires “one thing contractual.”
“Whether or not an “funding contract” can exist absent any post-sale obligation is a pure, controlling query of regulation,” the alternate claims within the court docket submitting.
Grewal elaborated that whereas Coinbase holds the view that an funding contract requires contractual obligations after the sale, the SEC argues that it would not.
This comes after U.S. District Choose Katherine Failla denied Coinbase’s movement to dismiss the SEC’s case in opposition to the alternate, alleging that it operates as an unregistered alternate, dealer and clearing company.
Nonetheless, if the court docket decides to approve the interlocutory enchantment, it might probably considerably affect the case, which has been ongoing since June 2023.
It’s because the SEC asserted that Coinbase crypto transactions had been funding contracts “regardless of an absence of any alleged contractual undertakings,” in response to Coinbase.
“Reversal on the query introduced would eliminate the SEC’s principal claims, which account for the majority of the grievance’s factual allegations.”
It additional claims {that a} query of regulation is controlling if its decision might “considerably have an effect on the conduct of the motion.”
Associated: Coinbase cleared in lawsuit over crypto transactions
Grewal highlighted the early submitting of Coinbase’s enchantment request, submitted simply 17 days after the movement to dismiss was denied.
Nonetheless, he justified the motion as a consequence of its significance for the broader crypto trade, with the purpose of resolving the dispute over crypto transactions as quickly as doable.
“We’re asking to take this up on enchantment sooner than regular as a result of it’s important to our trade. The SEC’s motion in opposition to us and different digital asset firms goes means past the authorized authority granted by Congress and places an unjust cloud over US digital asset innovation.”
This comes after Coinbase achieved a significant victory in a civil lawsuit in opposition to plaintiffs claiming that the alternate supplied and bought them unregistered securities.
On April 6, Cointelegraph reported that the USA Courtroom of Appeals for the Second Circuit dominated in favor of Coinbase, confirming that secondary gross sales of cryptocurrencies on its platform don’t violate the Securities Trade Act.
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