Source: Blockchain Knights

In a Jan. 7 ruling, District Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York approved Coinbase’s lawsuit against the U.S. Securities and Exchange Commission (SEC). An interlocutory appeal motion was filed.

Judge Failla claimed that both parties were seeking clarification on an "important legal issue", although they disagreed over "which court would appropriately clarify it".

As a result, Coinbase can now appeal the SEC’s charges to the U.S. Court of Appeals for the Second Circuit.

Court proceedings will remain suspended pending a ruling on whether an investment contract requires an actual contract.

Interlocutory appeal is a legal process that allows parties to appeal the decision of the court of first instance during the case.

The SEC filed a lawsuit against Coinbase on June 6, 2023, accusing the company of offering unregistered securities through its Crypto asset offering and marking program.

Paul Grewal, chief legal officer of Coinbase, cheered the victory on ...."

Jake Chervinsky, chief legal officer of VariantFund, described the news as "very important."

Chervinsky added that the court’s ruling will clarify whether digital asset trading on the secondary market is governed by securities laws.

Jeremy Hogan, a partner at law firm Hogan & Hogan, stressed that interlocutory appeals are rare and indicate that the trial judge believed something should be examined.

In addition, Hogan also said that Coinbase’s appeal is the same as the core argument of Ripple’s appeal in its legal battle with the SEC.

Kraken Chief Legal Officer Marco Santori congratulated Coinbase’s legal team and called the development “a big win for the entire ecosystem.”

Amanda Tuminelli, chief legal officer of the DeFi Education Fund, said the decision to stay the lawsuit while Coinbase appeals to the Second Circuit Court is very important.

Tuminelli also emphasized that Judge Fallia considered the Blockchain Association’s “amicus curiae” brief.

The brief believes that distinguishing the offer and sale of Crypto assets from the offer and sale of merchandise and collectibles can expand the scope of SEC supervision.