Source: cryptoslate
Compiled by: Blockchain Knight
In a ruling on January 7, a district judge for the Southern District of New York, Katherine Polk Failla, approved Coinbase's motion for an interlocutory appeal against the SEC.
Judge Failla claimed that both parties seek clarification on an 'important legal issue', although they dispute 'which court is appropriate for clarification'.
Thus, Coinbase can now appeal the SEC's allegations to the U.S. Court of Appeals for the Second Circuit.
The court proceedings will continue to be stayed until a ruling is made on whether an investment contract requires a tangible contract.
An interlocutory appeal is a legal procedure that allows parties to appeal a ruling made by a trial court during the course of a case.
The SEC filed a lawsuit against Coinbase on June 6, 2023, accusing the company of offering unregistered securities through its crypto asset sales and monitoring plans.
Coinbase Chief Legal Officer Paul Grewal celebrated the victory on X, using sports terminology to explain the development: 'The referee just stopped the clock on the field and is heading to the replay room in New York...'
VariantFund Chief Legal Officer Jake Chervinsky described the news as 'very significant'.
Chervinsky added that the court's ruling will clarify whether trading of digital assets in the secondary market falls under securities law jurisdiction.
Jeremy Hogan, a partner at Hogan & Hogan law firm, emphasized that interlocutory appeals are rare, indicating that the trial judge believes certain matters should be reviewed.
Additionally, Hogan noted that Coinbase's appeal shares the same core argument as Ripple's appeal in its legal battle with the SEC.
Kraken Chief Legal Officer Marco Santori congratulated Coinbase's legal team, stating that this development is 'a major victory for the entire ecosystem'.
DeFi Education Fund Chief Legal Officer Amanda Tuminelli stated that the decision to stay litigation during Coinbase's appeal to the Second Circuit Court is very important.
Tuminelli also emphasized that Judge Failla considered the blockchain association's 'amicus curiae' brief.
The brief argues that distinguishing between the sale and offering of crypto assets and the sale and offering of goods and collectibles could expand the SEC's regulatory reach.