Coinbase Celebrates Legal Victory When Court of Appeals Upholds Interlocutor in SEC Case
In recent times, Coinbase Global Inc has scored yet another major victory in its ongoing legal battle with the US SEC. Coinbase CLO Paul Grewal recently shared on XPost that the court, led by Judge Kathryn Polk Failla, has approved Coinbase's interlocutory appeal. This case involves charges from the US SEC for enabling Coinbase to trade in crypto asset securities.
Over strong objections by @SECGov , Judge Failla granted our appeal and stayed the District Court litigation. We appreciate the court's careful consideration. Grewal shared. “We will go to the second round,” he added.
Fox Business reporter Eleanor Terrett highlighted that this is a major legal victory for Coinbase. Judge Failla granted the company a rare interlocutory appeal, allowing Coinbase to appeal from a second Circuit Court of Appeals.
This is in response to the SEC's claim that Coinbase is violating federal securities laws by operating as an unregistered exchange and broker-dealer, as well as participating in the illegal sale of unregistered securities through its staking program. In addition, Judge Failla ordered a stay of the district court proceedings pending appeal.
This decision is significant because it contradicts earlier judgments in which the contention that exchange properties are not investment contracts is rejected.
The case will now move to the Second Court of Appeal in January. In addition, the exchange recently won a lawsuit against the US FDIC, based on a request for documents under the Freedom of Information Act (FOIA).
