A New York judge approves Coinbase's interim appeal request, suspending the SEC's lawsuit

ChainCatcher news, according to The Block, U.S. District Judge Katherine Polk Failla of the Southern District of New York approved Coinbase's interlocutory appeal request on Tuesday, temporarily halting the lawsuit by the U.S. Securities and Exchange Commission (SEC) against the exchange. An interlocutory appeal refers to an appeal made before the judge has issued a final ruling, and such requests are typically rarely granted. The case will next be submitted to the Second Circuit Court of Appeals for consideration.

Judge Failla noted in her order that this case raises a key legal question regarding the applicability of the Howey test in the context of crypto assets, a question that has significant divergence, and its resolution will help advance the final ruling on SEC enforcement actions. She emphasized that due to the "conflicting authoritative interpretations" of the Howey test in crypto assets, further clarification from the Second Circuit is needed.

Coinbase Chief Policy Officer Faryar Shirzad stated that this decision is yet another blow to the SEC leadership's attempts to create ongoing uncertainty and chaos, and he thanked Judge Failla for allowing the interlocutory appeal.