U.S. District Judge Katherine Polk Failla for the Southern District of New York. Courtesy photo‘Issue of First Impression’: New York Judge Clears Coinbase Appeal Amid Crypto Regulatory Clash
“The significance of a crypto-asset’s digital ecosystem to the Howey analysis, particularly as a point of contrast with collectibles or other commodities, is a difficult issue of first impression for the Second Circuit,” U.S. District Judge Katherine Polk Failla ruled in the opinion and order.
January 07, 2025 at 06:53 PM
4 minute read
What You Need to Know
- U.S. District Judge Katherine Polk Failla granted Coinbase’s request for authority to pursue an interlocutory appeal in its case against the U.S. Securities and Exchange Commission.
- The judge pinpointed three aspects, such as presenting a controlling question of law, in which there is substantial ground for difference of opinion, and the resolution of which would advance the termination of the SEC’s enforcement action.
- The case will now go before the U.S. Court of Appeals for the Second Circuit.
In a rare move, U.S. District Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York granted Coinbase's request for authority to pursue an interlocutory appeal on Tuesday to the U.S. Court of Appeals for the Second Circuit on whether cryptocurrency transactions can be classified as investment contracts under federal securities laws.
“Over the strenuous objection of [the U.S. Securities and Exchange Commission], Judge Failla has granted our motion for leave to pursue an interlocutory appeal and stayed the district court litigation,” Paul Grewal, the chief legal officer for Coinbase, said on social media. “We appreciate the Court's careful consideration. On to the Second Circuit we go.”
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