Coinbase requests a higher court to hear the core issues of its legal dispute with the SEC

ChainCatcher news, Coinbase is attempting to request a higher court to hear the core issue of its legal dispute with the SEC, namely whether digital asset transactions constitute investment contracts regulated by the SEC in the absence of issuer's ongoing obligations. The court must accept the appeal request to proceed, but the SEC has stated that the exchange has not yet filed an appeal. Previously, Coinbase's request to dismiss the SEC's enforcement action against it was denied by a federal court. In its latest application, Coinbase stated that the appellate court has not ruled on whether digital asset transactions without issuer's ongoing obligations can constitute an "investment contract" under the "Howey test," which is the legal standard for determining whether an asset is a security. Coinbase claims that this issue could have a significant impact on "a multi-trillion-dollar industry." The SEC, on the other hand, believes that the court has indicated Coinbase lacks sufficient legal grounds and that its appeal request should be dismissed. Whether the request can be accepted remains to be determined by the court.