Coinbase Global Inc. has secured a significant victory in its legal battle with the U.S. Securities and Exchange Commission (SEC). Judge Catherine Polk Failla granted approval for an interlocutory appeal, pausing the ongoing litigation.
Case Overview
Coinbase is accused by the SEC of violating federal securities laws by unregistered trading of crypto assets and engaging in the illegal sale of unregistered securities. The SEC claims that Coinbase operates as an unregistered exchange and broker-dealer.
Court Decision
Judge Catherine Failla approved Coinbase's request for an appeal and paused the district court proceedings, which is a rare instance in legal proceedings.
Implications for Coinbase
This decision is crucial as it allows Coinbase to attempt to overturn previous rulings that did not accept their argument that its assets are not investment contracts. The case will move to the Second Circuit Court of Appeals in January. Additionally, Coinbase recently won a case against the FDIC regarding a Freedom of Information Act request.
The court's decision gives Coinbase an opportunity to continue fighting the SEC's allegations and defend its position before higher judicial authorities. The case is expected to progress in the appeals court in January.
