Official announcements or press releases from the SEC

Coinbase Wins Appeal to Second Circuit, Judge Failla Grants Stay on SEC Litigation

Jan 7, 2025, 07:35 PM

Coinbase has secured a significant legal victory in its ongoing dispute with the U.S. Securities and Exchange Commission (SEC). Judge Catherine Polk Failla granted Coinbase's motion for an interlocutory appeal, allowing the case to proceed to the Second Circuit Court of Appeals. This decision also includes a stay on the district court litigation, despite the SEC's strenuous objection. The appeal focuses on the critical issue of whether digital asset transactions in secondary markets are subject to securities laws. The court's decision to allow the appeal highlights the need for clarity on how the Howey test applies to cryptocurrencies. This ruling could have broader implications for the entire crypto ecosystem, as it may influence other SEC enforcement actions involving similar legal questions.