Court suspends order in SEC v. Coinbase lawsuit pending appeal
Judge Katherine Failla has granted Coinbase's request for a temporary appeal, citing differing court interpretations of what constitutes a security under SEC jurisdiction.
The cryptocurrency exchange Coinbase has secured a small victory in its civil lawsuit against the U.S. Securities and Exchange Commission after a federal judge ordered a temporary appeal.
In a filing submitted on January 7 in the U.S. District Court for the Southern District of New York, Judge Katherine Failla approved the appeal against the dismissal of Coinbase's motion for summary judgment, which she filed in March 2024. Judge Failla ordered a stay of all proceedings in the case until the Second Circuit Court issues a ruling on the temporary appeal of this order.
One of the key arguments for the SEC's case against Coinbase is the allegation that "some transactions involving cryptocurrency assets qualify as investment contracts within the SEC's jurisdiction" — that is, as securities. Judge Failla stated that there is a "possibility of reversal" of her interpretation of investment contracts based on the Howey test, approving Coinbase's appeal.