The SEC has rejected Coinbase's request for an appeals court to rule on cryptocurrency rules

The U.S. SEC has rejected Coinbase's request for an appeals court to review whether traditional securities rules apply to cryptocurrencies. In its application, Coinbase said it wants the appeals court to consider whether the Howie test, long used for securities evaluation, should be applied to digital assets. However, the SEC noted that Coinbase has not successfully demonstrated the need for such an evaluation. The SEC said Coinbase's attempt to create a "new legal test" was rejected by the court. The court held that Coinbase's arguments lacked consistency and did not succeed in proving the existence of a conclusive issue. For now, the judge in charge of hearing the SEC case against Coinbase will rule on Coinbase's interlocutory appeal motion.