As stated by the SEC in the official document, "Coinbase remains unable to advance a single, coherent version of this theory, which it now claims presents a controlling question”
In its latest filing, the Securities and Exchange Commission rejected Coinbase's plea to seek clarity regarding the application of traditional securities regulations to the crypto domain.
Earlier, crypto exchange Coinbase queried the Second Circuit Court of Appeals about whether the Howey Test should be extended to digital assets. The exchange had expressed optimism that such an extension would not materialize.
In response, the SEC swiftly dismissed Coinbase's plea. According to the agency, an appeals court should not entertain Coinbase’s plea to review the applicability of conventional securities rules to cryptocurrencies.
The SEC further emphasized that Coinbase's focus on specific legal questions about "contractual obligations" diverged from the actual issue of applying the Howey Test to crypto transactions.
