According to a report by The Block, Katherine Polk Failla, a judge of the U.S. District Court for the Southern District of New York, on Tuesday approved Coinbase's interlocutory appeal request, temporarily halting the U.S. Securities and Exchange Commission (SEC) lawsuit against the exchange. An interlocutory appeal refers to an appeal made before the judge's final ruling, and such requests are typically rarely granted. 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 critical legal issue regarding the applicability of the Howey test in cryptocurrency assets, a matter of significant disagreement, and its resolution will help advance the final determination of SEC enforcement actions. She emphasized that due to the 'conflicting authoritative interpretations' of the Howey test in cryptocurrency assets, further clarification from the Second Circuit is necessary. Coinbase's Chief Policy Officer Faryar Shirzad stated that this decision is another blow to the SEC leadership's attempts to create ongoing uncertainty and chaos, and he thanked Judge Failla for allowing the interlocutory appeal.
