The legal battle between the United States Securities and Exchange Commission (SEC) and leading cryptocurrency exchange Coinbase has taken a significant step forward, as Judge Katherine Polk Failla has approved a joint request from both parties to proceed with the scheduling of hearings. This development comes after weeks of anticipation surrounding the SEC’s lawsuit against exchange.
In a tweet on July 24, Coinbase’s Chief Legal Officer, Paul Grewal, announced that Judge Failla had given the green light for the submission of opening briefs and subsequent responses. The judge issued a scheduling order for Coinbase’s Rule 12(c) motion for judgment on the pleadings, indicating a serious intent to move the case forward.
The joint request filed by the SEC and Coinbase outlined the agreed-upon dates for various filings in the case. Coinbase’s motion and opening brief are now set to be due on August 4, 2023, followed by deadlines for supporting documents and responses, each with their respective time frames. However, an impasse was reached when it came to setting a deadline for the SEC’s opposition brief.
Court Deadlines Set and Opposition Brief Dispute Resolved in Coinbase Vs SEC Lawsuit
Coinbase proposed a 30-day period after its initial motion and brief, while the SEC sought 60 days. In response, Judge Failla granted approval “in part,” setting August 4 as the deadline for Coinbase’s initial brief and August 11 for supporting documents. She also settled the dispute over the SEC’s opposition brief, which is to be submitted on or before October 10, 2023, with exchange required to reply by October 24 or sooner.
The ongoing legal saga has not been without consequences for Coinbase. In response to the SEC lawsuit, the exchange announced on July 14 that it would be temporarily pausing staking additional assets for customers in California, New Jersey, South Carolina, and Wisconsin until “further notice.” This move reflects the seriousness of the situation and the impact the case may have on the company’s operations.
While the SEC’s case against Coinbase has garnered significant attention, it is not the only crypto-related lawsuit involving the regulatory agency. The high-profile Ripple Labs lawsuit remains a hot topic in the industry, raising questions about the SEC’s approach to regulating digital assets.
In a separate development, Coinbase’s CEO, Brian Armstrong, reportedly plans to engage in discussions with lawmakers in the U.S. regarding the legislation of digital assets and other related topics. This indicates the growing significance of the cryptocurrency industry and its impact on the broader financial landscape.
As the court dates for initial case arguments draw near, the entire cryptocurrency community and financial market will be closely monitoring the proceedings. The outcome of this legal battle could have far-reaching implications for the regulation and future of cryptocurrencies in the United States.