The US Securities and Trade Fee (SEC) has requested a four-month extension to finish truth discovery in its lawsuit towards Coinbase.
In a letter submitted to Choose Katherine Polk Failla on Sept. 18, the SEC requested to maneuver the present discovery deadline from Oct. 18 to Feb. 18, 2025. The company stated the extension would enable it to overview a considerable quantity of extra paperwork.
Extension request
In its letter, the SEC highlighted its ongoing efforts to adjust to the court docket’s discovery necessities, noting that it has produced “a whole bunch of hundreds” of paperwork for Coinbase. The regulator added that it’s presently following a court docket order and reviewing an extra 133,582 distinctive paperwork.
The SEC reached an settlement with Coinbase relating to the search phrases and custodians for the overview. Nevertheless, the company famous that it requires extra time to finish the duty and highlighted that this marks the primary such request within the case.
The SEC’s request additionally included a proposal to amend the Civil Case Administration Plan, extending all subsequent deadlines by 4 months. The extension would impression future proceedings within the case, together with key deadlines associated to motions and trial preparations.
Coinbase has consented to each extensions, which might give each events extra time to arrange for the following part of the lawsuit.
SEC vs. Coinbase
The lawsuit between the US Securities and Trade Fee (SEC) and Coinbase started in June 2023, when the SEC accused the alternate of working as an unregistered securities dealer.
The SEC claimed that a number of digital property provided on Coinbase’s platform had been unregistered securities, violating US securities legal guidelines. The case relies on the Howey Take a look at, a authorized framework used to find out what constitutes a safety.
Coinbase has disputed the SEC’s claims, arguing that the property on its platform don’t meet the definition of securities and that the corporate complies with current legal guidelines. The case has concerned intensive discovery efforts, with each events agreeing to a number of doc opinions.
Coinbase has additionally filed a movement to dismiss the SEC’s lawsuit, arguing that the watchdog’s claims lack advantage and that the company is overreaching in its regulatory authority over cryptocurrencies. The alternate additional argued that the SEC has failed to supply the mandatory readability on which digital property fall underneath securities regulation.
This case is seen as a key authorized battle within the regulation of cryptocurrencies within the US and, relying on its end result, may have broad implications for the business.
Talked about on this article
