Coinbase Asks Court to Rule Crypto Trading Should Not Be Subject to Securities Laws

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Coinbase has requested that a US appeals court rule that cryptocurrency trades should not be classified as securities, as the company continues to fight against a lawsuit from the Securities and Exchange Commission.

In a filing submitted to the Second Circuit Court of Appeals on January 21, Coinbase stated that determining whether the buying and selling of cryptocurrencies on the secondary market should be considered investment contracts under securities laws is crucial for the entire crypto industry.

It also pointed out that the case presents an opportunity to establish clear regulations for the industry, which is valued at trillions of dollars.

The lack of a definitive ruling on this matter, according to Coinbase, creates confusion and uncertainty as market participants could face different rules depending on the court’s jurisdiction.

Furthermore, the company states that without a clear understanding of the regulatory responsibilities for digital asset trading, the SEC and Congress may not be able to properly regulate the industry.