On January 7, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York approved Coinbase's motion for an interlocutory appeal against the SEC. Judge Failla noted that both parties seek clarification on an important legal issue, although there is disagreement over which court is appropriate for clarification. Coinbase can now appeal to the U.S. Court of Appeals for the Second Circuit. Court proceedings will be paused before a ruling on whether an actual contract is needed for investment contracts. The SEC sued Coinbase on June 6, 2023, accusing it of offering unregistered securities. Coinbase's Chief Legal Officer Paul Grewal celebrated the victory on X, stating that the referee stopped the clock. VariantFund's Chief Legal Officer Jake Chervinsky called the news very significant, stating that the court's ruling will clarify whether secondary market digital asset trading is subject to securities law. Hogan & Hogan partner Jeremy Hogan emphasized the rarity of interlocutory appeals, indicating that the trial judge believes certain matters need examination. Kraken's Chief Legal Officer Marco Santori congratulated the Coinbase team, stating that this progress is a significant victory for the entire ecosystem. DeFi Education Fund's Chief Legal Officer Amanda Tuminelli highlighted that Judge Failla considered the Blockchain Association's briefing, which argued that distinguishing the sale of crypto assets from goods and collectibles could expand the SEC's regulatory reach.

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