The SEC Files To Stop Coinbase’s Attempt to Ask a Howey Test Question

• The SEC has moved to stop Coinbase’s appeal to the court in the ongoing litigation.
• Coinbase applied for permission to ask the Second Circuit Court of Appeals if the Howey Test should apply to digital assets.
• Coinbase accused the SEC of creating a “new legal test” that would fit cryptocurrencies into existing securities.

The U.S. Securities and Exchange Commission (SEC) has moved to stop Coinbase’s appeal to the court in the ongoing litigation. The crypto exchange reportedly applied for permission to ask the Second Circuit Court of Appeals if the Howey Test should apply to digital assets.

To stop Coinbase’s appeal, the SEC filed on Friday that the crypto exchange has not successfully argued that the appeal is needed. However, the Howey Test question stems from the SEC’s accusation that Coinbase operates as an unregistered broker, exchange, and clearinghouse in the U.S.

Meanwhile, the SEC’s stand revolves around some cryptocurrencies being securities. Under such conditions, the affected cryptos would meet the Howey Test, requiring Coinbase to get the SEC’s approval before making them available for customers to trade.

According to the fili…

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