Coinbase Secures Legal Victory as Court Approves Interlocutory Appeal in SEC Case

In a latest development, Coinbase Global Inc has once again achieved a big win in its ongoing legal battle against the US SEC. Coinbase CLO Paul Grewal, in a latest X post shared that the court, led by Judge Catherine Polk Failla, has approved Coinbase’s request for an interlocutory appeal. This case involves charges from the U.S. SEC accusing Coinbase of enabling the trading of crypto asset securities.

“Over the strenuous objection of @SECGov, Judge Failla has GRANTED our motion for leave to pursue an interlocutory appeal and STAYED the district court litigation.  We appreciate the Court’s careful consideration.” Grewal shared. “On to the Second Circuit we go.” he added. 

Eleanor Terrett, a Fox Business journalist, highlighted that this is a significant legal victory for Coinbase. She noted that Judge Failla has granted the company a rare interlocutory appeal, allowing Coinbase to request an appeal from the Second Circuit Court. 

This is in response to the SEC’s claims that Coinbase is violating federal securities laws by operating as an unregistered exchange and broker-dealer, as well as engaging in the illegal sale of unregistered securities through its staking program. In addition, Judge Failla ruled that the district court proceedings will be paused while the appeal is considered.

This decision is significant because it goes against an earlier ruling where the exchange’s argument that its assets are not investment contracts was rejected.

The case will now move to the Second Circuit Court of Appeals in January. Besides, the exchange recently won a lawsuit against the U.S. FDIC, which was based on a request for documents under the Freedom of Information Act (FOIA).