In a significant development, the US Securities and Exchange Commission (SEC) has petitioned the court for more time to complete the fact discovery process in its lawsuit against Coinbase. The SEC aims to extend the deadline by four months, pushing it past the upcoming US elections.
SEC Requests Extension For Fact Discovery Deadline
On Wednesday, the SEC formally requested additional time to fulfill the fact discovery requirements in its legal battle with Coinbase Inc. and Coinbase Global Inc. Addressing Judge Katherine Polk Failla, the SEC has also sought to amend the Civil Case Management Plan and scheduling order.
The document highlighted that both parties had consented to the extension, and no prior requests for such an extension had been made. The SEC has already undertaken substantial efforts, producing hundreds of thousands of documents to meet the court’s demands. However, a recent court order necessitates the review of additional documents, further complicating the timeline.
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Challenges in Document Review
The court’s ruling on the Defendant’s Motion to compel requires the SEC to review a significant volume of new documents. Following an agreement with Coinbase, the SEC must now review at least 133,582 unique documents. The extension seeks to provide adequate time to comply with this order, moving the deadline from October 18, 2024, to February 18, 2025. This shift will also impact subsequent deadlines in the case.
Coinbase’s Ongoing Battle with US Regulators
In addition to the SEC lawsuit, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, has provided updates regarding their Freedom Of Information Act (FOIA) lawsuit against the Federal Deposit Insurance Corporation (FDIC). In a recent social media update, Grewal announced progress in obtaining “pause letters” sent to financial institutions, which allegedly advised them to cease dealings with crypto firms.
FOIA Suit Developments
Grewal explained that the court has ordered the FDIC to produce a “Vaughn Index,” a detailed log of documents withheld under FOIA exemptions. He views this as a significant milestone for the crypto community, stating, “Inch by inch, we will get to the truth of Chokepoint 2.0.”
Legal expert James Murphy, known as MetaLawMan, applauded the move, indicating that increased scrutiny would challenge the administration’s stance on Operation Chokepoint 2.0. Many in the crypto community echoed this sentiment, expressing frustration with US regulators and criticizing Congress for not fulfilling its oversight responsibilities.
Market Impact
As these legal battles unfold, Coinbase’s stock (COIN) is trading at $171.82, reflecting the market’s cautious optimism. The ongoing regulatory scrutiny and legal challenges continue to create a complex landscape for the cryptocurrency industry.
Stay tuned for more updates as we closely monitor these significant developments in the crypto regulatory environment.
