Coinbase has achieved a notable legal success as a judge from the Southern District of New York has approved the company’s request for an interlocutory appeal in its ongoing litigation with the SEC. This ruling allows Coinbase to contest the SEC’s allegations, which include claims of functioning as an unregistered exchange and broker-dealer.

The allegations also extend to offering unregistered securities through its staking program. The appeal highlights essential issues regarding the classification of digital asset transactions under securities law, particularly concerning the Howey test. The judge’s decision indicates that insights from the Second Circuit Court of Appeals could be pivotal in moving the case forward.

Coinbase’s chief legal officer expressed optimism about the ruling, emphasizing its significance despite the SEC’s objections. This development marks a critical moment in the ongoing legal discourse surrounding digital assets and regulatory frameworks.

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