The U.S. Securities and Exchange Commission (SEC) opposed Coinbase's request for an interlocutory appeal on a "controlling question" related to the ongoing litigation. The SEC alleged that Coinbase attempted to manipulate the interpretation of the question.

The SEC stated that Coinbase "dislikes" the Howey Test and the current securities regulatory framework and has chosen to build its business in ways that may be expensive to follow existing laws.

Coinbase filed an interlocutory appeal on April 12, arguing that an investment contract cannot exist without a post-sale obligation. However, the SEC argued that Coinbase's claim that this was a control question was because the exchange failed to provide a clear explanation of what constitutes a "contractual commitment."

The SEC argued that no court in 80 years had ever required "contractual commitments" after a sale. The SEC stated that the interim review was not justified because Coinbase proposed a new legal test and disagreed with the court's rejection of that test.

While the SEC maintains that transactions on Coinbase's platform should not be considered securities, the SEC takes the opposite view. "At least some of the transactions on Coinbase's platform constitute 'investment contracts,' which federal securities laws have long recognized as securities," the SEC said in March 27 court documents.

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