In a January 7 decision, U.S. District Judge Katherine Polk Failla of the Southern District of New York granted Coinbase's motion for an interlocutory appeal of the case to the U.S. Securities and Exchange Commission (SEC). ruling.
Judge Failla argued that both parties are seeking clarification on “important legal issues” but are “disputing” which court has the proper means to do so.
As a result, Coinbase can now appeal the SEC's charges to the U.S. Court of Appeals for the Second Circuit. Proceedings will remain stayed pending a decision on whether an actual contract is required for the investment agreement.
Interlocutory appeal is a legal procedure that allows parties to appeal a trial court's decision while a lawsuit is ongoing.
The SEC filed a lawsuit against Coinbase on June 6, 2023, alleging that Coinbase offered unregistered securities through its virtual currency offering and staking program.
community rejoices
Paul Grewal, Chief Legal Officer of Coinbase, said: cheered Court victory against X. he also explained Developments in sports terminology:
“The referee just stopped the clock on the field and is heading to the replay booth in New York…”
Jake Cherbinski, chief legal officer at Valiant Funds, called the news “huge.” He added that the Second Circuit's decision clarifies whether digital asset transactions in the secondary market are subject to securities laws.
Jeremy Hogan, attorney and partner at Hogan & Hogan, said: highlighted Interlocutory appeals are rare and indicate that trial-level judges think something needs to be checked.
Additionally, Hogan said Coinbase's appeal is driven by the same core issue as Ripple's appeal in its legal battle with the SEC.
Marco Santori, Kraken's Chief Legal Officer, said: Congratulations Coinbase's legal team called the development “a huge win for the entire ecosystem.”
Amanda Tuminelli, Chief Legal Officer of the DeFi Education Fund, said: called The decision to stay the case while Coinbase appeals to the Second Circuit is significant.
she too highlighted Judge Failla considered: Blockchain Association Court Summary, The group argued that distinguishing the offer and sale of virtual currency from the offer and sale of merchandise and collectibles could expand the SEC's regulatory reach.
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