2024

United

Test

<p>The legal battle between the SEC and Coinbase reaches another turning point. A U.S. judge has indeed begun to question the foundations of cryptocurrency regulation in the United States.</p>
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     <p lang="en" dir="ltr">Adjourned. <br><br>The <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@SECGov</a>'s summation of its argument (broadly) is that <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@coinbase</a> is making up a new version of the Howey Test and that there can be no deviating from Howey as it was originally written. <br><br>The SEC lawyer said "The Congress of 1934 would be surprised that today…</p>— Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1747711848135217234?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 17, 2024</a>
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  The Coinbase VS SEC case is at the center of attention in the crypto community
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<h2 id="h-crypto-status-a-u-s-judge-asks-for-clarifications">Crypto status: A U.S. judge asks for clarifications</h2>
<p>After the <a href="https://www.cointribune.com/ripple-vs-sec-le-regulateur-crypto-savoue-vaincu/" rel="noopener noreferrer nofollow">Ripple</a> case, it is now the turn of the <strong>legal battle between the SEC and Coinbase</strong> to attract the attention of the crypto community. Recently, it took a significant turn during a recent hearing.</p>
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<p>Indeed, U.S. Judge Katherine Polk Failla is now calling into question the very foundations of cryptocurrency regulation in the United States. At the heart of the debate is <strong>the SEC’s alleged reinterpretation of the famous Howey test</strong>, a key standard used to determine the classification of assets as securities.</p>
<p>Judge Failla has expressly asked the SEC to provide clearer definitions of crucial terms such as “securities” and “staking.” This highlights the persistent ambiguity surrounding the classification of cryptocurrencies.</p>
<p>If Judge Failla’s position prevails, it could potentially mean that cryptocurrencies (including <a href="https://www.cointribune.com/xrp-et-eth-ne-sont-pas-des-titres/" rel="noopener noreferrer nofollow">XRP</a>) would not be considered as securities in the United States. Such development would constitute a major advancement in the recognition of crypto as a separate asset class.</p>
<p><strong><u>Decryption:</u></strong> crypto would escape the strict regulations applicable to traditional securities.</p>
<h2 id="h-the-sec-retaliates-by-issuing-a-warning-to-coinbase">The SEC retaliates by issuing a warning to Coinbase</h2>
<p>In the heat of the crypto battle, the SEC <a href="https://coinedition.com/sec-v-coinbase-federal-judge-says-tokens-are-not-securities/" target="_blank" rel="noopener noreferrer nofollow">warns</a> Coinbase not to alter the Howey test. According to the American crypto regulator, any modification would go against the <strong>regulations established in 1934</strong>.</p>
<p>For its part, Coinbase rejects the allegations against it. The crypto exchange firmly maintains that it is not reinterpreting <a href="https://www.cointribune.com/coinbase-remet-en-question-lapplication-du-test-honey-de-la-sec/" rel="noopener noreferrer nofollow">the Howey test</a> in any way. According to its legal team, the SEC is instead expanding the application of the test to <strong>fit the growing complexity of the crypto market</strong>.</p>
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 <p><em>“Coinbase’s position does not imply a revision of the Howey test, but rather a necessary adaptation to take into account the rapid evolution of technology and practices in the crypto market,”</em> it is explained.</p>
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<p>This confrontation between the SEC and Coinbase could redefine the status of cryptocurrencies. The final decision will inevitably influence the crypto landscape in the <a href="https://www.cointribune.com/crypto-etats-unis-bientot-au-capitole/" target="_blank" rel="noopener noreferrer nofollow">United States</a>.</p>

Crypto: Coinbase challenges the SEC in court – Howey Test questioned

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