Major Advantage for the Exchange | Airdrop Alert Pro

A U.S. judge has temporarily halted proceedings in a legal case between Coinbase and the SEC, allowing the cryptocurrency exchange to seek a high court opinion on key legal issues.

On January 7, District Judge Katherine Polk Failla granted Coinbase’s request to appeal to the Court of Appeal on key issues.

Coinbase’s legal battle with SEC will set precedent for U.S. cryptocurrency industry

this appeal Will resolve issue of whether certain digital assets can be traded on Coinbase Eligible for securities. It will also clarify whether transactions involving these assets need to be based on howey test.

On top of that, the case will remain on hold until the appeal is resolved.

“Over strong objections from the SEC, Judge Failla granted our motion for interlocutory appeal and stayed the district court proceedings. We appreciate the court’s careful consideration. We go to the Second Circuit,” wrote Coinbase chief legal officer Paul Grewal.

Coinbase maintains that tokens traded on its platform do not meet legal standards as securities. The company argued that token issuers had no obligations to buyers and failed to meet Howey test definition of security.

Furthermore, Judge Failla accepted this argument. She said the legal issues provided good grounds for dissent. Addressing this issue could expedite the conclusion of SEC enforcement actions.

The decision comes at a critical time for the crypto industry. President-elect’s incoming administration Donald Trump hints at potential policy shift for the industry. below Directed by Gary GenslerThe U.S. Securities and Exchange Commission has since launched several high-profile lawsuits against major cryptocurrency platforms over securities laws.

Now, Paul Atkins Nominated as SEC ChairmanCryptocurrency-related enforcement cases initiated under previous leadership are expected to be de-prioritized.

this SEC files lawsuit against Coinbase Back in 2023, it accused the company of facilitating trading in at least 13 tokens that the agency believed should have been registered as securities.

While the case mostly continued after the 2024 ruling, claims related to Coinbase’s wallet service were dismissed. Coinbase also criticized the SEC for approving its public listing but later questioning the legality of its operations.

A series of regulatory victories

In a separate development, Coinbase scored a regulatory victory earlier in the day, gaining License from New York Regulators. The approval allows the exchange to offer more new products to New York residents.

Coinbase also has it Shared new accusations Regarding federal regulators’ efforts to curb banks’ involvement in cryptocurrency activities.

The claims have intensified scrutiny of regulatory practices, prompting accusations of new initiatives dubbed “Operation Suffocationnt 2.0,” to kill the cryptocurrency industry.

Senator Cynthia Lummis recently said: “Michael Barr has completely failed in his duties as Vice Chairman of Oversight, leading to the implementation of Operation Choking Point 2.0 and ending in Wyoming numbers. The asset industry has illegally increased its power at its expense.” Wrote on X (formerly Twitter).

As Congress considers new legislation to clarify the regulatory framework for digital assets, the industry is lobbying for policies that support its growth. While such cases may eventually make their way to the Supreme Court, the results may lose relevance if lawmakers enact clear rules governing cryptocurrencies in the United States.