SEC Trades Blows with Coinbase, Secures Extended Deadline

The judge has issued a scheduling order in the case.

A very small Gary Gensler celebrating a small victory on the stairs of a court house building.
Created by Gabor Kovacs from DailyCoin
  • Proceedings are taking shape in the SEC case against Coinbase.
  • The judge has issued a scheduling order in the case.
  • The outlined schedule places a speed bump in Coinbase’s path.

As the United States Securities and Exchange Commission and Coinbase set the stage for what is likely to be a thrilling legal battle with significant implications for the crypto markets in the U.S., a key contention in the case has been urgency.

Sponsored

Coinbase’s actions, particularly, have been targeted at speeding up the timeline to dismiss the case as quickly as possible. However, one of these efforts has failed, per a recent court order.

SEC Scores Minor Scheduling Victory

In a tweet on Sunday, July 23, Coinbase Chief Legal Officer Paul Grewal disclosed that Judge Katherine Polk Failla had issued a scheduling order in the SEC case against the crypto exchange. The order outlines a timeline for the crypto exchange to file its motion for dismissal and the regulator to file its opposition.

The major contention around the scheduling had been when the SEC should respond to Coinbase’s motion to dismiss. While the crypto exchange had insisted that the regulator should be forced to respond within 30 days, the judge has sided with the SEC granting a 60-day window for the opposition brief.

Per the recent order, Coinbase will be expected to file its opening brief on or before August 4, with a response expected from the SEC on or before October 3 and a further Coinbase reply by October 24. A seven-day window is given after each filing for amicus briefs.

Coinbase’s response to the SEC’s complaint reveals that the crypto exchange intends to question the regulator’s claimed jurisdiction over crypto markets and exchanges to get the SEC case thrown out.

Major Questions

On June 6, the SEC accused Coinbase of operating an unregistered securities exchange, broker, and clearing agency, labeling several assets listed on the platform as unregistered securities. 

Sponsored

In its response on June 28, Coinbase refuted the SEC’s labeling of its listed crypto assets. Additionally, the firm raising the major questions doctrine challenged the regulator’s asserted jurisdiction over the nascent crypto markets. 

On the Flipside

  • The SEC recently decided against starting to strike out Coinbase’s defenses after the judge said she was against it.
  • Judge Failla had expressed that she was against rushing the case due to her engagements from July through October.

Why This Matters

While the scheduling order is not a major ruling, it dents Coinbase’s plans to speed things up.

Read this to learn more about the SEC’s decision to give up its plan to move to strike out Coinbase’s defense:

SEC Gives Up on Coinbase Defense Strike as Judge Takes a Stance

Polygon 2.0’s NFT is gaining traction. Find out more:

Polygon 2.0 Commemorative NFT Trends on OpenSea with Over 40,000 Mints

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.