Coinbase Vs. SEC Is ‘Far From Over’, Here’s Why

On Wednesday, Judge Failla of the Southern District of New York denied Coinbase’s motion to dismiss the Securities and Exchange Commission’s (SEC) lawsuit against Coinbase. The SEC accuses Coinbase of acting as an unregistered exchange, broker, and clearinghouse, and alleges that its staking program involves the offering and sale of unregistered securities.

Ripple CLOs remain optimistic

Despite Coinbase’s setback, Ripple’s chief legal officer Stuart Alderroti suggests this legal battle is still in its early stages.

“A quick knockout punch would have been nice, but at the end of the day, the wheels of justice move slowly and ultimately side with the good guys. Judge CB We gave the SEC the benefit of the doubt early on – it has to be. This is not over yet.”

His comments echoed the sentiments of Paul Grewal, Coinbase’s chief legal officer, who also argued against X: express His view: “Today, the court decided that our SEC lawsuit will move forward on most of the claims, but the claims against Coinbase Wallet were dismissed. We are prepared for this and , we look forward to uncovering more about the SEC’s internal views and discussions regarding virtual currency regulation. […] Looking forward, we remain confident in our legal arguments and look forward to the opportunity to receive first discovery from the SEC. ”

What’s next for Coinbase vs.? SEC

The question of what lies in store for Coinbase in the wake of Judge Feila’s ruling is a very interesting topic. FOX Business journalist Eleanor Tellet said: shine light on Regarding next steps: “New: What will Coinbase do next in the wake of Judge Failla’s ruling? The court will set a full discovery schedule and both sides will request documents for the discovery process. can do.

Terret continued, “According to sources, “Coinbase will seek as much discovery as possible from the SEC during this process because parts of this case could be weakened and exposed by discovery.” “and the SEC will do the same.”

She also pointed out similarities to the discovery process in the Ripple case, providing unprecedented insight into the SEC’s internal views on Ripple and the broader crypto market. The discovery process, summary judgment filings, and possible trial suggest that the legal proceedings between Coinbase and the SEC will last well over a year.

In the meantime, Coinbase may consider the option of filing an “interlocutory appeal” of some or all of the motions to dismiss the denial, based on the strategic judgment of its legal team. This route was previously attempted by the SEC in the Ripple case following Judge Torres’ summary judgment, but ultimately failed due to strict standards for interlocutory appeals before final judgment.

Carlo.eth, a prominent member of the Ethereum community and attorney, commented on the strategic importance of the discovery phase for Coinbase: It will likely provide significant momentum toward the summary judgment stage. ”

At the time of writing, COIN is trading at $256.7, down approximately -9% since the news was published.

COIN stock price, 1 week chart | Source: Coins at TradingView.com

Featured image from YouTube/Minority Business Law Association, chart from TradingView.com

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