Coinbase Scores a Win: SEC Case Paused for Appeal Review

A federal judge has allowed an appeal to move forward and halted proceedings until a higher court reviews key issues in the case.

The decision, filed on January 7 in the Southern District of New York, stems from Coinbase’s appeal of a March 2024 ruling. That ruling denied the company’s request for judgment in its favor.

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Paul Grewal, Coinbase’s Chief Legal Officer, expressed gratitude for the court’s decision in a January 7 post on X. He said:

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.

Coinbase has also supported efforts to uncover documents suggesting that federal agencies pressured banks to avoid serving crypto firms, a situation referred to as "Operation Chokepoint 2.0".

At the center of the dispute is whether certain crypto transactions qualify as investment contracts and fall under securities laws. Judge Katherine Failla, who is overseeing the case, acknowledged the possibility that her interpretation of securities law could be overturned.

“Although the Court does not appreciate, and will not co-sign, Coinbase’s efforts to cast aspersions on the SEC’s approach to crypto-assets, <…> the fact remains that these conflicting decisions on an important legal issue necessitate the Second Circuit’s guidance”, Judge Failla said in the filing.

Meanwhile, Roman Storm, Tornado Cash's co-founder, recently sought the dismissal of criminal charges against him. How did it go? Read the full story.