District Judge Katherine Polk Failla of the U.S. District Court Southern District of New York on January 7 granted Coinbase’s request for a preliminary injunction in its lawsuit against the U.S. Securities and Exchange Commission (SEC). Verdict.

Judge Failla claimed the parties were seeking clarity on an “important point of law” despite “disputing” which court had the appropriate tools to provide clarity.

As a result, Coinbase can now appeal the SEC allegations to the Second Circuit of the US Court of Appeals. The court case remains suspended pending a decision on whether an investment contract requires an actual contract.

An interim appeal is a legal procedure that allows a party to appeal a trial court’s decision while the trial is ongoing.

The SEC filed a lawsuit against Coinbase on June 6, 2023, accusing the company of offering unregistered securities through its crypto offerings and staking program.

The community is happy

Paul Grewal, Chief Legal Officer of Coinbase, cheered the court wins on X. So does he explained The sporting development:

“The referee has just stopped the clock on the field and is heading to the replay booth in New York…”

Variant Fund Chief Legal Officer Jake Chervinsky described the news as “huge.” He added that the Second Circuit’s decision will clarify whether digital asset transactions in secondary markets are subject to securities laws.

Jeremy Hogan, attorney and partner at Hogan & Hogan, highlighted that interim appeals are rare and indicate that the judge believes something should be reviewed.

Additionally, Hogan said that Coinbase’s appeal rests on the same central issue as Ripple’s appeal in its litigation against the SEC.

Marco Santori, Chief Legal Officer of Kraken, congratulated Coinbase’s legal team called the development a “huge win for the entire ecosystem.”

Amanda Tuminelli, Chief Legal Officer at DeFi Education Fund, called The decision to stay the lawsuit while Coinbase appeals to the Second Circuit is important.

you too highlighted that Judge Failla took this into account Blockchain Association Amicus Brief, It argued that distinguishing between the offer and sale of cryptocurrencies and those of goods and collectibles could expand the SEC’s regulatory discretion.

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