Coinbase Granted Interlocutory Appeal in Ongoing SEC Case
In a significant development, Coinbase has been granted an interlocutory appeal by Judge Katherine Polk Failla of the Southern District of New York, allowing the cryptocurrency exchange to seek guidance from the Second Circuit Court of Appeals. This decision temporarily pauses the ongoing court case against the US Securities and Exchange Commission (SEC).
Background of the Case
The SEC first filed a complaint against Coinbase in June 2023, alleging that the exchange operated as an unregistered brokerage, exchange, and clearing agency in violation of federal securities laws. Coinbase responded by filing a motion to dismiss the lawsuit, arguing that the SEC’s accusations were based on claims that 12 listed crypto tokens trading on the exchange were securities. However, six of these tokens were already trading when the SEC authorized Coinbase to go public, leading Coinbase to claim that the lawsuit should be dismissed.
Key Developments in the Case
The case has seen several key developments, including:
* In December 2023, the SEC denied a rulemaking petition by Coinbase, with SEC Chair Gary Gensler stating that “existing laws and regulations apply to the crypto securities markets.” * In March, Judge Failla ruled that the SEC’s case against Coinbase would move forward on most of the claims against it, denying the exchange’s motion to dismiss the case. * In September, the SEC filed a motion for an extension from the court, seeking more time to provide Coinbase with key documents. * Coinbase has also pushed for court intervention to obtain SEC documents on how securities laws apply to cryptocurrencies.
Implications of the Interlocutory Appeal
The interlocutory appeal granted to Coinbase is a significant development in the case, allowing the exchange to seek guidance from the Second Circuit Court of Appeals on the validity of the SEC’s complaints. This decision has been hailed as a “big legal win” for Coinbase by Fox Business News reporter Eleanor Terrett.
Conclusion
The ongoing case between Coinbase and the SEC has seen several twists and turns, with the latest development being the grant of an interlocutory appeal to Coinbase. As the case continues to unfold, it remains to be seen how the Second Circuit Court of Appeals will rule on the validity of the SEC’s complaints. One thing is certain, however: the outcome of this case will have significant implications for the cryptocurrency industry as a whole.
Source: Coinjournal.net
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