Coinbase won a modest victory over the SEC in its continuing legal struggle. A federal judge allowed an interlocutory appeal, halting all proceedings until the Second Circuit ruled on the case. The SEC's complaint revolves around designating certain crypto transactions as securities.
Judge Katherine Failla acknowledged conflicting findings in comparable matters involving Terraform Labs and Ripple. These differing perceptions of what constitutes security necessitated higher court intervention. The SEC sued Coinbase in June 2023, alleging that it had operated as an unregistered securities exchange since 2019. The crypto sector criticized the SEC's decision, accusing it of overreach.
Meanwhile, Coinbase aggressively participated in the 2024 United States elections. The exchange supported pro-crypto candidates by making big contributions to a political action committee.
With Trump's victory and imminent changes at the SEC, Coinbase's chief legal officer has called for a new approach to digital asset regulation. As top SEC officials prepare to go, the crypto industry awaits future regulatory developments.
