Jan 9, 2025

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Judge Grants Coinbase Interlocutory Appeal on Crypto Asset Classification

Coinbase won a significant legal victory against the SEC, receiving permission for an interlocutory appeal regarding whether crypto assets qualify as investment contracts. This ruling requires the Second Circuit to address this critical question, which Coinbase emphasized is pressing amidst numerous pending cases.

Key points include:

• The appeal will examine how securities laws apply to crypto asset transactions.
• Judge Katherine Polk Failla stated this legal question warrants appellate consideration due to its complexity.
• Proceedings are stayed until the appeal is resolved, potentially delaying outcomes for months.
• A ruling from the Second Circuit may provide clearer guidance than conflicting District-level orders.

This case could have broader implications for the entire crypto industry depending on the outcome.