New York judge grants Coinbase’s interlocutory appeal request, halting SEC lawsuit

PANews reported on January 8 that according to The Block, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York approved Coinbase’s interlocutory appeal request on Tuesday, temporarily suspending the U.S. Securities and Exchange Commission’s (SEC) lawsuit against the exchange. Interlocutory appeals are appeals filed before a judge makes a final decision, and such requests are rarely granted. The case will next go to the Second Circuit Court of Appeals.

In his order, Judge Failla noted that the case raises a key legal issue regarding the scope of the Howey test in crypto-assets, an issue that is subject to significant disagreement, and that its resolution will help drive the final ruling on the SEC’s enforcement action. She stressed that further clarification from the Second Circuit was needed because of “conflicting authoritative interpretations” of the application of the Howey test to crypto-assets.

Coinbase Chief Policy Officer Faryar Shirzad said that this decision is another blow to the SEC leadership’s attempts to create continued uncertainty and confusion, and thanked Judge Failla for allowing the interlocutory appeal.