The U.S. Securities and Exchange Commission (SEC) is scheduled to respond to Coinbase’s initial legal defense on July 13, following the exchange’s unconventional tactic of filing its response well ahead of schedule. This development has expedited the court proceedings, moving the pre-motion conference to the same date.
Coinbase’s Early Response
Coinbase filed its response on May 17, 40 days before the August 7 deadline. This prompted the SEC to request a three-day extension due to the July 4 holiday weekend, which was granted by the court. As a result, the SEC’s response was due by July 3.
Coinbase’s Defense
In its defense, Coinbase has argued that several tokens highlighted in the SEC’s complaint are beyond the Commission’s jurisdiction. The exchange’s legal counsel emphasized this point, stating that the SEC’s case violates due process and constitutes an abuse of discretion.
Coinbase’s Strategy
Coinbase’s decision to employ a motion for judgment on the pleadings and file its response early is considered a creative strategy by legal experts.
This approach allows the exchange to present supporting documents to the judge through its answer, thereby influencing the court’s decision.
Next Steps
During the court appearance on July 13, Judge Katherine Polk Failla will evaluate Coinbase’s motion and decide whether it can proceed.
While permission to proceed is typically granted as a formality, any compelling arguments presented by the opposing side could potentially affect the outcome.
Coinbase has not yet provided additional comments regarding the ongoing case. The outcome of the court hearing on July 13 will shed light on the next steps in this closely watched legal battle between Coinbase and the SEC.
