Conversely, if the appellate court sides with the SEC, the decision would bolster the regulator's authority to oversee the cryptocurrency market, potentially exposing other exchanges and token issuers to similar enforcement actions. A Broader Battle for Regulatory Clarity Coinbase's legal battle is one of several high-profile cases in which the SEC is seeking to assert its authority over the rapidly evolving digital asset landscape. Industry stakeholders have long criticized the SEC for its lack of clear guidelines, arguing that its enforcement-first approach creates uncertainty and stifles innovation. Coinbase's Chief Legal Officer, Paul Grewal, has repeatedly emphasized the company's commitment to working within the bounds of the law while advocating for a regulatory framework that balances consumer protection with innovation. What's Next? The Second Circuit must now decide whether to accept Coinbase's interlocutory appeal.