SEC Rejects Coinbase Appeal in Ongoing Legal Battle

The SEC has urged a court to reject Coinbase's request for an early appeal, a recent legal document revealed on Friday. This development continues the ongoing legal struggle between the cryptocurrency platform and the regulatory body, which started almost a year ago when the SEC accused Coinbase of operating illegally without registration and breaching securities laws with its Staking program.

The SEC's filing argues that an interlocutory appeal is unnecessary, as it is only based on Coinbase's dissatisfaction with the initial rejection of its proposed legal framework. The regulatory agency emphasized that a simple disagreement does not constitute a substantial reason for such an appeal.

In retaliation, Coinbase's Chief Legal Officer, Paul Grewal, criticized the SEC on social media, accusing it of inconsistency. He highlighted a previous case involving Ripple, where the SEC supported a similar kind of appeal, contradicting its current stance.

The legal battles trace back to last March, when the SEC issued a notice to Coinbase, leading to several court cases. In December, the SEC dismissed Coinbase's petition to establish clearer crypto regulations, suggesting that existing laws suffice. This has intensified discussions about the SEC's approach to crypto regulation under Chair Gary Gensler.

While some claims against Coinbase were dismissed, including those against its wallet service, the court allowed the SEC to continue pursuing allegations related to Coinbase's Staking service and its operation as an unregistered exchange. Judge Katherine Polk Failla pointed out that Coinbase's management activities might fit the criteria of a security under the Howey test, suggesting further complications for the company.