A federal judge sided with Coinbase in its ongoing lawsuit against the US Securities and Exchange Commission [SEC]. Assisting the crypto exchange score a point, the judge ordered the regulatory agency to produce official documents that could solidify Coinbase’s defense.
Background
- Last month, the SEC requested the court to deny Coinbase’s motion to compel it to release all documents related to crypto
- The agency’s lawyers contended that the material sought by Coinbase is “entirely irrelevant” to the court case and went on to brand the subpoena request as “breathtakingly broad
Details
- In the latest ruling, Judge Katherine Failla partially granted and partially denied Coinbase’s motion to compel discovery from the SEC
- Community members say, “It's time we start punching the bully back!”
- They also ask Coinbase to “expose the SEC and punish them for their treachery”
Why should you pay attention?
- This ruling has been made in connection with the SEC’s case against the exchange filed in June 2023. The agency alleged that Coinbase functioned as an “unregistered securities broker” since 2019 and violated US securities laws
- The latest development marks a partial victory for Coinbase because its lawyers will soon have access to SEC documents related to its application of tokens as securities
- The implications and rulings in the case could set the tone for other future crypto-related cases and are precedent-worthy
Who said what?
The judge’s ruling noted,
- “The Court GRANTS IN PART and DENIES IN PART Defendants’ motion to compel”
It is also important to note,
- “The Court GRANTS IN FULL the SEC’s motion to permanently file under seal, viewable to the Court and parties only, certain specified redactions from both parties’ filings in connection with Defendants’ motion to compel”
Coibase’s Chief Legal Officer Paul Grewal said,
- “In short, the Court ordered the SEC to produce important discovery. We thank the Court for its careful consideration.”
In other related news
- Coinbase filed two lawsuits against the SEC and the Federal Deposit Insurance Corporation [FDIC] last quarter on the grounds of not adhering to its Freedom of Information Act request
- By suing the agencies, the exchange intends to get access to internal records on their "deliberate and concerted effort" to pressurize banks to deny crypto firms access to the country’s banking sector
- At the time, Grewal exclaimed, “We demand better from our financial regulators”
