Coinbase has requested that a US appeals court make a ruling on whether or not crypto trading on their platform should be subject to securities laws.
In their petition filed on Tuesday, Coinbase’s lawyers claimed that this case is the best opportunity to decide on how to treat the secondary trading of digital assets.
They argued that this is an urgent matter that requires immediate attention, as the outcome will have a significant impact on the crypto industry, consumers, and financial institutions.
Coinbase stated that crypto transactions on their platform do not meet the requirements of the Howey test, which is used to determine what qualifies as an investment contract.
This is because the buyers and sellers on the platform are anonymous to each other, and there is no common enterprise between them due to the blind bid-ask system used to match trades.
