Coinbase Seeks Interlocutory Appeal Amid SEC’s Ripple Case Appeal
In the ongoing legal dispute with the SEC, Coinbase has requested the presiding judge to allow an interlocutory appeal, which is an appeal made before the final resolution of a case.
This request comes in response to the SEC’s recent appeal in its separate case against Ripple, a web3 payments company.
Coinbase initially filed for this interlocutory appeal in early April, seeking a review from the Second Circuit of Appeals on a crucial issue: the application of the Howey Test—established by a 1946 Supreme Court ruling—to digital assets. The exchange’s legal team noted that the differing opinions from Congress members, senators, and regulatory bodies highlight the complexities of the topic. They pointed out that inconsistent judicial outcomes further underscore the matter’s difficulty.
After the SEC submitted a letter a month later urging the court to dismiss Coinbase’s appeal, claiming there was “no substantial ground for difference of opinion,” Judge Katherine Polk Failla has yet to issue a decision on the request.
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Now, Coinbase is again pressing Judge Failla to evaluate its appeal in light of the SEC’s recent actions against Ripple. The exchange contends that having both cases reviewed simultaneously by the Second Circuit would provide the court with a comprehensive understanding of the legal and practical implications stemming from the SEC’s litigation stance.
According to Coinbase’s legal team, the SEC has acknowledged the “industry-wide significance” of the Howey Test’s application to secondary-market digital asset transactions, as evidenced by its appeal in the Ripple case. They stress that “prompt and complete appellate review is urgently needed.” As of now, Coinbase and the SEC have not provided comments regarding this matter.
While interlocutory appeals are infrequently granted, the SEC’s recent appeal bolsters Coinbase’s case, according to cryptocurrency attorney James “MetaLawMan” Murphy, who described the filing as a “smart move.” He expressed surprise that Judge Failla has yet to rule on Coinbase’s initial motion for an interlocutory appeal, noting that such motions are typically resolved quickly.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
