In a significant development for cryptocurrency exchange Coinbase, Judge Katherine Failla of the US District Court for the Southern District of New York granted an order for an interlocutory appeal in its civil case against the US Securities and Exchange Commission (SEC). This decision came on January 7, 2025, staying all proceedings until the Second Circuit reviews the appeal allowed by Judge Failla. The judge noted the possibility of reversing her prior interpretation of investment contracts, a central argument in the SEC's claims against Coinbase that certain crypto transactions qualify as securities. The filing highlighted conflicting rulings from different courts regarding the definition of securities, particularly in relation to ongoing SEC cases against Ripple Labs and Terraform Labs. The outcome of this ruling, alongside the broader regulatory landscape, could significantly impact how cryptocurrency firms engage with the SEC. Coinbase has also been actively influencing US elections to advocate for pro-crypto policies, further indicating its commitment to shaping regulatory outcomes in the industry.

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