Coinbase secures a legal victory as the court grants an interim appeal in the SEC case.

In the latest development, Coinbase Global Inc has once again scored a major victory in its ongoing legal battle with the US SEC. Coinbase CLO Paul Grewal said in a recent X post that the court, led by Judge Catherine Polk Failla, granted Coinbase’s request for an interim appeal. The case includes an indictment by the U.S. SEC accusing Coinbase of enabling trading in cryptocurrency asset securities.

“Despite vehement opposition from @SECGov, Judge Failla granted our motion to pursue an interlocutory appeal and stayed the District Court action. We appreciate the court’s careful consideration.” Grewal shared. “Let’s go to the second circuit.” He added:

Fox Business journalist Eleanor Terrett highlighted this as an important legal victory for Coinbase. She noted that Judge Failla granted the company a rare interlocutory appeal, allowing Coinbase to request an appeal to the Second Circuit.

This is in response to the SEC’s allegations that Coinbase is violating federal securities laws by operating as an unregistered exchange and broker-dealer and illegally selling unregistered securities through a staking program. Judge Failla also ruled that district court proceedings would be paused while the appeal was considered.

This decision is significant in that it runs counter to a previous ruling that rejected the exchange’s claim that its assets were not investment contracts.

The case is now scheduled to go to the 2nd Circuit Court of Appeals in January. Additionally, the exchange recently won a lawsuit against the U.S. FDIC based on a document request under the Freedom of Information Act (FOIA).