The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase's appeal request in an ongoing lawsuit, accusing the crypto exchange of trying to manipulate the interpretation of a key legal question. The SEC reiterated that Coinbase disagrees with the Howey Test, the standard for determining what is a security, and the current securities regulation framework. The SEC sued Coinbase in June 2023, alleging the exchange violated federal securities laws by listing 13 tokens it claimed were securities. Coinbase argues that transactions on its platform should not be treated as securities and therefore are not under SEC regulations.