Eleanor Terrett, the renowned FOX Business journalist, just broke the news via Twitter. According to her, Coinbase has officially requested permission from Judge Failla to seek an interlocutory appeal regarding a ruling on investment contracts. This comes in the wake of a stressful time where the interpretation of the Howey Test on cryptocurrencies has become a divisive issue.
🚨BREAKING: @coinbase has filed a motion seeking Judge Failla’s permission to seek an interlocutory appeal on her recent order involving investment contracts.
Last month, Failla in her denial of Coinbase’s Motion to Dismiss the @SECGov’s case against it, cited Judge Rakoff’s…
— Eleanor Terrett (@EleanorTerrett) April 13, 2024
Judge Failla, last month, had dismissed Coinbase’s motion to drop the SEC’s lawsuit against them. The denial referenced Judge Rakoff’s opinion from the Terra case, which suggested that certain digital assets could be considered investment contracts under the Howey Test.
Coinbase is now challenging the application of this test to digital assets, highlighting a split in judicial opinions as an important point of law essential for granting an interlocutory appeal.
Terrett explained that historically, securing such appeals before a final judgment has proven challenging, exemplified by the SEC’s failed attempt last July to overturn Judge Torres’s decision regarding secondary market token sales in the Ripple case.
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Coinbase seeks to address a specific legal disagreement by asking the U.S. Court of Appeals for the Second Circuit to review the SEC’s view of digital asset
