Coinbase Global Inc. has reached an important milestone in its legal battle with the U.S. Securities and Exchange Commission (SEC).
A federal court presided over by Judge Catherine Polk Failla granted Coinbase’s request for an interlocutory appeal, representing a notable legal victory for the cryptocurrency exchange.
Paul Grewal, Coinbase’s Chief Legal Officer, announced the development on X, stating, “Over the strenuous objection of the @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. On to the Second Circuit we go.”
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. On to the Second Circuit we go. pic.twitter.com/FuZ2jcYvfF
— paulgrewal.eth (@iampaulgrewal) January 7, 2025
The SEC’s lawsuit alleges that Coinbase violated federal securities laws by operating as an unregistered exchange and broker-dealer and offering unregistered securities through its staking program. Judge Failla’s decision not only grants Coinbase the right to seek an appeal but also pauses all district court proceedings during the appellate review.
Fox Business journalist Eleanor Terrett described the ruling as a landmark victory, emphasizing its rarity. The case will proceed to the Second Circuit Court of Appeals in January. Coinbase will challenge earlier rulings, including rejecting the argument that crypto assets are not investment contracts.
Amid these legal developments, Grewal had urged the SEC to reconsider its approach to the crypto industry, advocating for regulatory frameworks prioritizing innovation over litigation. His comments came as speculation rose about potential policy shifts following Donald Trump’s re-election and his campaign pledge to remove SEC Chair Gary Gensler. Trump had promised to end what he termed the “anti-crypto crusade” by firing Gensler on his first day in office. Framing the decision as part of a broader initiative to unify the nation, Trump’s proposed shift suggested significant changes for the U.S. crypto landscape. Under Gensler, the SEC intensified enforcement against major crypto platforms, targeting centralized exchanges like Coinbase and decentralized entities like Uniswap.
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