The US Securities and Alternate Fee (SEC) has requested a four-month extension to finish reality discovery in its lawsuit towards Coinbase.
In a letter submitted to Decide 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 permit it to evaluation a considerable quantity of further 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 “tons of of hundreds” of paperwork for Coinbase. The regulator added that it’s at the moment following a court docket order and reviewing a further 133,582 distinctive paperwork.
The SEC reached an settlement with Coinbase relating to the search phrases and custodians for the evaluation. Nonetheless, 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 influence 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 further time to arrange for the following part of the lawsuit.
SEC vs. Coinbase
The lawsuit between the US Securities and Alternate 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 belongings provided on Coinbase’s platform have been unregistered securities, violating US securities legal guidelines. The case is predicated 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 belongings on its platform don’t meet the definition of securities and that the corporate complies with current legal guidelines. The case has concerned in depth discovery efforts, with each events agreeing to a number of doc critiques.
Coinbase has additionally filed a movement to dismiss the SEC’s lawsuit, arguing that the watchdog’s claims lack benefit and that the company is overreaching in its regulatory authority over cryptocurrencies. The alternate additional argued that the SEC has failed to offer the mandatory readability on which digital belongings fall below securities legislation.
This case is seen as a key authorized battle within the regulation of cryptocurrencies within the US and, relying on its consequence, may have broad implications for the trade.
