Coinbase just received a victory. While many continue to believe that a Trump-era SEC would wave a magic wand, dismissing pending suits against several crypto firms.
Yesterday the SEC, who sued this exchange in 2023 for claiming that crypto assets were investment contracts, won their motion to interlocutory review. It is important to note that this ruling doesn’t mean the end of the case. The Second Circuit will have to decide this issue, according to Coinbase. “could not be more pressing” You can also find out more about the following: “numerous cases pending…across the country.”
In Judge Katherine Polk Failla’s decision to grant Coinbase’s interlocutory appel motion:
“At issue is more than how to apply Howey (about which, the Court agrees, there is an extensive body of case law); at issue is how to apply Howey to crypto asset transactions, in the context of the surrounding digital ecosystems. That is a difficult legal question of first impression for the Second Circuit — more than mere disagreement with the Court’s Order.”
In other words, Failla thinks the legal question at hand — how and if crypto assets should be subject to securities laws — is too big to not consider at the appellate level.
Failla’s order could last months, or even longer, until the appeal interlocutory is heard. The Second Circuit’s ruling is more important than District orders that we have seen over the past few months. Many of these contradict each other.
Coinbase’s expensive, time-consuming legal battle just may be exactly what the industry is looking for…assuming things go its way, of course.
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