- Coinbase has challenged the SEC’s move to strike out its defense.
- The exchange has argued against delays in its hunt for dismissal.
- The recent filing comes ahead of a crucial hearing.
The United States Securities and Exchange Commission case against Coinbase is shifting into high gear.
After Coinbase filed its response to the SEC’s complaint, revealing its intent to seek dismissal of the case on June 28, the commission revealed its desire to strike out the bulk of the crypto exchange’s defense on July 7.
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Coinbase has again responded to the SEC, questioning the merits of its motion to strike and pushing against any delays to its proposed schedule for motions to dismiss.
Coinbase Wants the Fast Track to Dismissal
In a Wednesday, July 12, letter to Judge Katherine Polk Failla, Coinbase lawyers highlighted that the SEC must prove that no question of fact or law may allow the defense to succeed in its motion to strike.
But the crypto exchange’s lawyers argue that the firm’s response to the SEC’s complaint offered factual and legal reasons why the major questions doctrine should prevent the SEC from asserting jurisdiction over the crypto markets.
Coinbase lawyers further stressed that should the court grant the SEC leave to file motions to strike, it should not impact the exchange’s timeline for its proposed motions to dismiss.
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"The briefing should be independent of, and not interfere with, the prompt schedule that Coinbase has proposed for its own substantial and potentially case-dispositive motion for judgment on the pleadings," they argued.
The exchange’s letter comes ahead of a pre-motion conference scheduled for Thursday, July 13. The hearing will determine whether the crypto exchange will be granted permission to file its motions to dismiss. Prominent crypto legal commentator James “MetaLawMan” Murphy described this process as a formality, adding that permission is typically granted in these circumstances.
Per Coinbase’s proposed schedule, it will file its opening brief seven days after the court order, giving the SEC 28 days to answer.
The SEC accuses Coinbase of operating an unregistered securities exchange, broker, and clearing agency. In its response, Coinbase has argued that it does not offer trading in securities, adding that the law does not give the SEC jurisdiction over crypto exchanges.
Coinbase’s approach to the SEC’s case has so far prioritized speed. The exchange filed its response to the SEC’s complaint 40 days earlier than required, significantly speeding up the timeline of events.
On the Flipside
- Coinbase is locked in a separate legal battle with the SEC over a petition for rulemaking.
- Coinbase Chief Executive Officer Brian Armstrong has suggested that U.S. policymakers are fumbling the ball on crypto over Sam Bankman-Fried’s alleged fraud.
Why This Matters
The SEC case against Coinbase is one of the biggest crypto enforcement actions to date. The crypto exchange’s recent filing further underscores its desire to move quickly with the case.
Read this to learn more about Coinbase’s approach to the SEC case:
Why Coinbase’s SEC Rebuke is Being Lauded as Unique
Learn about why Polygon (MATIC) and BNB are seeing increased interest:
Polygon (MATIC) and BNB See Volumes Surge as Altcoins Recover
