Judge temporarily halts SEC case

The lawsuit between Coinbase and the SEC has been temporarily halted. This order came from Judge Katherine Polk Failla via a court order on Tuesday. In doing so, the judge agreed with Coinbase's argument that there are too many different court decisions within the U.S. regarding the legal status of cryptocurrencies - a legal uniqueness. Specifically, there are "conflicting rulings on the application of the Howey test to crypto assets." Failla therefore forwarded the case to an appellate court for review. This is a major victory for Coinbase in their dispute with the SEC. Paul Grewal, the crypto exchange's chief counsel, welcomed the decision on X:

Time is working against the U.S. authority. On Jan. 20, Paul Atkins will succeed Gary Gensler as the new head of the SEC. He is seen as a strong supporter of the crypto industry. It is possible that the SEC will then drop the charges entirely. The dispute with the SEC has been ongoing since June 2023. The authority accuses the crypto exchange of violating licensing requirements and dealing in illegal securities.