Coinbase, a leading cryptocurrency exchange, is pushing back against the U.S. SEC's authority on crypto transactions by applying for an interlocutory appeal on the definition of an "investment contract."

In a recent legal development, Coinbase has filed a petition to appeal the SEC's interpretation of an "investment contract" in their ongoing dispute. The core issue revolves around whether an "investment contract" requires a formal contractual agreement, with Coinbase asserting that it does, while the SEC holds a different viewpoint.

Paul Grewal, Coinbase's Chief Legal Officer, has taken the lead in this legal battle against the SEC. Grewal argues that the SEC's actions overstep their legislative authority, potentially stifling digital asset innovation in the United States.

Coinbase's appeal aims to expedite the clarification process, highlighting the urgency of regulatory clarity in the rapidly evolving cryptocurrency industry. Grewal's concerns are not unique, as the SEC has acknowledged the need for clarity in the Ripple case, recognizing the industry-wide implications of the issue.

Despite the legal uncertainties, Coinbase remains dedicated to the digital asset space. The exchange is advocating for regulatory clarity not only for its own operations but also for the millions of Americans invested in digital assets.

In a recent court ruling, Coinbase secured a minor victory against the SEC, with the court deciding that the secondary sale of cryptocurrencies does not constitute securities. This decision marks a positive step forward for Coinbase in its ongoing legal battle with the SEC.