"Are Coin-Linked Income Products Non-Financial Products? Australian Securities Regulator Appeals to Supreme Court"

# Australian Securities and Investments Commission Appeals High Court Over Crypto Case Ruling The Australian Securities and Investments Commission (ASIC) has submitted a special leave application to the High Court, contesting the Federal Court of Appeal's decision in its case against digital asset firm Block Earner. On October 21 (local time), ASIC released a formal statement challenging the appellate court's ruling, which declared that Block Earner’s "fixed-yield products linked to digital assets" did not classify as financial products under Australian law. ASIC emphasized the need for the High Court's interpretation to establish a clearer definition of financial products and determine when yield-earning or asset-conversion products should fall under regulatory oversight. "The definition of a financial product must remain broad and technologically neutral," stated ASIC. "Ensuring this definition applies comprehensively, including to financial services and products involving digital assets, is of critical importance." # Federal Court of Appeal’s Ruling In April 2023, the Federal Court of Appeal ruled that Block Earner’s fixed-yield product line was not categorized as a financial product, a managed investment scheme, or a derivative under Australian law. This exempted the company from obtaining a financial services license to operate such offerings. Viewing this decision as significant, ASIC has sought higher judicial clarification. For the High Court to consider the appeal, ASIC must demonstrate that the case involves a "substantive legal issue of public interest," a threshold that requires special leave for the appeal process to proceed. # Block Earner's Response Block Earner described the appellate court's April decision as "strong and reasonable," affirming the legitimacy of its business practices. The firm added that it plans to address ASIC's appeal through proper legal channels. "We stand by the Federal Court ruling as a sound validation of Block Earner's operational framework," the company stated. # Potential Landmark Ruling for Crypto Product Regulation If the High Court accepts the appeal, the case could set a critical precedent on the regulatory scope of digital assets, fixed-yield products, and their classification as financial instruments in Australia. The hearing schedule for the appeal has not yet been confirmed.