Coinbase has scored a significant win in the legal dispute against the Securities and Exchange Commission, to cheers from the cryptocurrency community

District Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York granted a Coinbase Motion for interlocutory appeal in lawsuit filed against the SEC on January 7. to rule.

Judge Failla claimed that the parties are seeking to clarify an “important question of law,” although they are “quarreling” over which court has the appropriate tools for clarification.

As a result, Coinbase can now appeal the SEC charges to the 2nd U.S. Circuit Court of Appeals. The court proceedings will remain suspended until a decision is issued on whether the investment contract requires an actual contract.

An interlocutory appeal is a legal procedure that allows a party to appeal a lower court’s ruling while the case is ongoing.

The SEC filed a lawsuit against Coinbase on June 6, 2023, accusing the company of offering unregistered securities through cryptocurrency offerings and a staking program.

Community rejoices

Paul GrewalChief Legal Officer at Coinbase, He cheered The court won over X. And so did he He explained Development in the sports field:

“The referee stops the clock on the field and goes to the replay booth in New York…”

Jake Chervinsky, chief legal officer at Variant Fund, called the news “huge.” He added that the Second Circuit’s decision will clarify whether digital asset transactions in secondary markets are subject to securities laws.

Jeremy Hogan, attorney and partner at Hogan & Hogan, Highlight Interlocutory appeals are rare and indicate that the judge at the trial level believes something should be investigated.

Additionally, Hogan said Coinbase’s appeal is driven by the same central point of contention in the currency market ripple The appeal is in their legal battle against the Securities and Exchange Commission.

marco santori, Kraken Chief Legal Officer, here Coinbase’s legal team described the development as a “huge win for the entire ecosystem.”

Amanda Tominelli, Chief Legal Officer at DeFi Education Fund, Named The decision to stay the lawsuit while Coinbase appeals to the Second Circuit is significant.

She too Highlight Which Judge considered Faila Blockchain Association Friend Summary, Which argued that distinguishing the offer and sale of cryptocurrencies from commodities and collectibles could expand the SEC’s regulatory reach.

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