PANews reported on January 8 that Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York approved Coinbase's request for an interim appeal on Tuesday, temporarily halting the U.S. Securities and Exchange Commission (SEC) lawsuit against the exchange. An interim appeal refers to an appeal made before a final ruling is issued by the judge, and such requests are rarely approved. The case will next be submitted to the Second Circuit Court of Appeals for review.
Judge Failla noted in her order that the case raises a key legal question about the applicability of the Howey test to crypto assets, a question that presents significant divergence, and its resolution will help advance the final ruling on SEC enforcement actions. She emphasized that due to the 'conflicting authoritative interpretations' of the Howey test in the context of crypto assets, further clarification from the Second Circuit Court is needed.
Coinbase Chief Policy Officer Faryar Shirzad said that this decision is another blow to the SEC leadership's attempt to create ongoing uncertainty and chaos, and thanked Judge Failla for allowing the interim appeal.
