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Coinbase is being allowed to appeal to the Second Circuit the March 2024 order by New York Judge Katherine Polk Failla that the SEC has plausibly argued that some transactions met the definition of investment contracts, and thus fell under their purview [I54]. Known as an “interlocutory appeal”, this request to appeal was made while the case still remains in its early stages, and such requests are somewhat rarely granted. However, Failla wrote, “Although the Court does not appreciate, and will not co-sign, Coinbase’s efforts to cast aspersions on the SEC’s approach to crypto-assets, the fact remains that these conflicting decisions on an important legal issue necessitate the Second Circuit’s guidance.” She also noted opinions in other cases in the district involving Terraform Labs and Ripple, where judges may have issued conflicting rulings. She continued, “The Court agrees with Coinbase that ‘[t]he conflict between Ripple on the one hand and Terraform and the [March 2024 Coinbase] Order on the other is symptomatic of the more fundamental difficulty of applying Howey to crypto transactions.’” Failla has stayed the rest of the case pending either a decision from the Second Circuit to deny the request for appeal, or a decision on the appeal itself.14 If the Second Circuit takes the case, it could be very meaningful for the crypto world, which has been battling the SEC over the “securities” determination for years now. However, the industry has put significant efforts towards