Coinbase secured a key procedural victory in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC) after Judge Katherine Failla of the U.S. District Court for the Southern District of New York granted an interlocutory appeal. The decision, filed on Jan. 7, pauses proceedings while the Second Circuit reviews the appeal, adding a new layer of complexity to the high-profile case.

The SEC’s lawsuit against Coinbase, filed in June 2023, alleges the crypto exchange operated as an unregistered securities exchange, broker, and clearing agency since 2019. Central to the case is whether certain…