A federal judge in Connecticut has allowed Digital Currency Group, along with CEO Barry Silbert and president Mark Murphy, to pursue an interlocutory appeal over whether the Genesis Yield program should be treated as a security. Judge Stefan Underhill said there is meaningful disagreement over how older securities-law precedents apply to crypto assets, making the issue suitable for review by the Second Circuit. The appeal challenges Underhill’s February order that allowed parties tied to the Genesis Global bankruptcy to move forward with litigation. DCG maintains that Genesis Yield does not meet the definition of a security. The case is being closely watched because a higher-court ruling could become an important reference point for how crypto-related products are assessed under U.S. securities law.
Judge Allows DCG to Appeal on the Securities Question
According to Techub News, citing Bloomberg, federal judge Stefan Underhill in Connecticut has approved an interlocutory appeal by Digital Currency Group (DCG), its CEO Barry Silbert, and president Mark Murphy over whether the Genesis Yield program constitutes a security. Underhill said there is disagreement over how older securities-law precedents should be applied to crypto, and that the issue warrants attention from the U.S. Court of Appeals for the Second Circuit.
The appeal is directed at an order Underhill issued in February, when he allowed parties connected to the Genesis Global bankruptcy case to proceed with litigation. DCG argues that its Genesis Yield program should not be classified as a security. The next stage of the case could offer an important legal reference for determining whether crypto-related products fall within the scope of U.S. securities law.
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