Coinbase Wins Bid for Fast Second Circuit Review in SEC Suit (1)

Coinbase Inc. will get a chance to immediately appeal a district court order and have the Second Circuit address whether transactions involving digital assets are securities under federal law.

The resolution could ultimately topple the US Securities and Exchange Commission’s enforcement action against the country’s largest crypto exchange, Judge Katherine Polk Failla said in granting Coinbase’s request for an interlocutory appeal to the US Court of Appeals for the Second Circuit on Tuesday. The US District Court for the Southern District of New York judge stayed proceedings in the SEC case pending the appeal.

The appeal queries how courts should ...