In a significant development for Coinbase, U.S. District Judge Katherine Failla has granted the company’s request for an interlocutory appeal in its ongoing legal battle with the Securities and Exchange Commission (SEC). The court also stayed the district court proceedings, allowing Coinbase to appeal key aspects of the case to the Second Circuit Court of Appeals.
Coinbase Chief Legal Officer Paul Grewal shared the news on Twitter, saying: “Despite the SEC’s strong objections, Judge Failla granted our request for a temporary appeal and stayed the case in district court. We appreciate the court’s careful consideration. We are moving on to the Second Circuit.”
The appeal, a rare procedural move, allows Coinbase to seek a higher court’s review of the SEC’s allegations that the company violated federal securities laws. Specifically, the SEC alleges that Coinbase operated as an unregistered exchange and brokerage firm and also engaged in the illegal sale of unregistered securities through its staking program.
Crypto journalist Eleanor Terrett called the decision a “major legal victory” for Coinbase. “Judge Failla granted the company a very rare interlocutory appeal, meaning Coinbase is allowed to appeal to the Second Circuit, challenging the SEC’s claims,” Terrett said.
In addition to granting the appeal, Judge Failla also stayed the district court proceedings, meaning the current lower court case will be paused while the Second Circuit considers Coinbase’s appeal.
*This is not investment advice.
