The US court has granted an interlocutory appeal to Coinbase if it is against the SEC

Coinbase may now seek guidance from a second appeals court to determine whether the SEC's complaints are valid.

Coinbase has temporarily suspended its ongoing court action against the US Securities and Exchange Commission (SEC) and has been granted an interlocutory appeal.

Judge Catherine Polk of the Southern District of New York granted the crypto exchange's request.

In a June 6, 2023 complaint, the SEC argued that Coinbase “acted as an unregistered broker, exchange and clearing agency in violation of federal securities laws.”

This latest filing means Coinbase can now go to the Second Circuit Court of Appeals to receive guidance and determine whether the SEC's complaints are valid.

Taking to X, Coinbase Chief Legal Officer Paul Grewal wrote: “Over the strong objection of @SECGov, Judge Failla granted our appeal and stayed the District Court litigation. We appreciate the caution of the court. We're going to the second round.”

Over the strong objection of @SECGov , Judge Failla granted our request for leave to pursue an interlocutory appeal and stayed the district court proceedings. We appreciate the caution of the court. We move on to the second round. pic.twitter.com/FuZ2jcYvfF

— paulgrewal.eth (@iampaulgrewal) January 7, 2025

SEC vs. Coinbase

With this latest move, it looks like the back-and-forth between the two is finally coming to an end.

Following the 2023 SEC complaint, Coinbase filed an answer in late June to dismiss the suit for lack of jurisdiction.

In a 177-page report, Coinbase argued that the SEC's allegations were based on claims from 12 of the crypto tokens listed on the exchange. However, when the SEC allowed Coinbase to go public, six out of 12 crypto assets were traded.

As a result, Coinbase said the lawsuit should be dismissed because the agency did not classify any crypto assets as securities.

In December 2023, the SEC rejected a legislative petition filed by Coinbase. SEC Chairman Gary Gensler said, “Existing rules and regulations apply to crypto securities markets. However, SEC commissioners Hester Peirce and Mark Uyeda said they “disagree with the commission's decision.”

After a March report, Judge Fayla ruled that the SEC's case against Coinbase should move forward on most of the claims, denying the exchange's request to dismiss the case.

In September, the SEC then requested an extension from the court, giving Coinbase more time to submit key documents. Recently, Coinbase pushed for court intervention to obtain SEC filings on how securities laws apply to cryptocurrencies.

Now, with the final judge's decision, this is a “huge legal victory” for Coinbase, according to Fox Business News reporter Eleanor Terrett.