Judge Rules in Coinbase's Favor in SEC Battle Coinbase wins motion to compel discovery. Key documents must be shared with the SEC.
A federal judge has ruled in Coinbase's favor in an ongoing legal battle with the US Securities and Exchange Commission, ordering the SEC to produce documents that strengthen Coinbase's defenses.
Coinbase argues that the SEC's vague regulatory stance has put the company and the crypto industry in a “catch-22” position, making compliance nearly impossible.
Southern District of New York Judge Catherine Failla Coinbase granted the motion To compel discovery, including key documents related to how the SEC interprets the application of securities laws to digital assets. Although some restrictions were placed on the scope of the documents, Coinbase was granted access to much of what was requested, including key information related to “”.Howe's test,” the SEC uses to determine whether assets are securities.
Coinbase's Chief Legal Officer is Paul Grewal Expressed happiness over the rule: “Judge Failla ruled from the bench on our motion to compel the SEC to provide information crucial to arguing our case. In short, the Court ordered the SEC to make substantive discovery.
The ruling is a key part of Coinbase's legal battle with the SEC, which sued the company in June 2023. The agency said Coinbase operated as an unregistered securities exchange and failed to properly register its staking services.
The SEC's aggressive approach has drawn criticism, with Coinbase arguing that its lack of clear rules is an attempt to stifle the crypto industry through massive litigation.
The future of the US cryptocurrency industry is at stake, with potentially far-reaching implications for both the regulatory environment and the way digital assets are traded and managed.
If Coinbase prevails, it could mean increased clarity and stability for the industry. If the SEC is successful, it will force sweeping changes in the way crypto firms operate, making compliance more expensive and complex.
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Shares of Coinbase stock (coin) ended the week at a near seven-month low of $147.35.
Related TopicsCoinbaseSecurities and Exchange Commission (SEC)
