TechFlow news, January 8 — According to The Block, on Tuesday Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York granted Coinbase's petition for interlocutory appeal, temporarily staying the Securities and Exchange Commission's (SEC) lawsuit against the exchange and referring the matter to the Second Circuit Court of Appeals for review. In her order, Judge Failla stated that the case raises a controlling question of law regarding the scope of the Howey test as applied to crypto assets—one that involves substantial ground for difference of opinion and whose resolution would materially advance the ultimate termination of the SEC's enforcement action. She emphasized that due to "conflicting authoritative interpretations" surrounding the application of the Howey test to crypto assets, further clarification from the Second Circuit is necessary.
Coinbase Chief Policy Officer Faryar Shirzad commented that this decision deals another blow to the SEC leadership's efforts to create ongoing uncertainty and confusion, and expressed appreciation to Judge Failla for allowing the interlocutory appeal.
Interlocutory appeals are appeals filed before a final judgment is issued by a trial judge and are typically granted only in rare circumstances.
