Coinbase Secures Legal Victory as Court Approves Interlocutory Appeal in SEC Case
In the latest development, Coinbase Global Inc has scored another major victory in its ongoing legal battle with the U.S. SEC. Coinbase CLO Paul Grewal said in the latest X post that the court, led by Judge Catherine Polk Failla, has granted Coinbase’s interlocutory appeal request. The case involves the U.S. SEC’s accusation that Coinbase facilitated trading in crypto-asset securities.
“Over strong objections from @SECGov, Judge Failla granted our motion for interlocutory appeal and stayed the district court proceedings. We thank the court for its careful consideration,” Grewal shared. “We’re going to the Second Circuit,” he added.
Fox Business News reporter Eleanor Terrett emphasized that this is a major legal victory for Coinbase. She noted that in a rare move, Judge Failla granted the company’s interlocutory appeal, allowing Coinbase to appeal to the Second Circuit.
This was in response to SEC allegations that Coinbase violated federal securities laws by operating as an unregistered exchange and broker-dealer and illegally selling unregistered securities through its staking program. In addition, Judge Failla ruled that proceedings in the District Court will be stayed while the appeal is considered.
The decision is significant because it goes against a previous ruling that rejected the exchange’s argument that its assets were not investment contracts.
The case will be moved to the 2nd Circuit Court of Appeals in January. Additionally, the exchange recently won a lawsuit against the U.S. Federal Deposit Insurance Corporation (FDIC) based on a Freedom of Information Act (FOIA) request for documents.
