The US Securities and Exchange Commission's (SEC) lawsuit against cryptocurrency exchange Coinbase is progressing, with preliminary arguments scheduled to be filed on August 4, 2023. Coinbase's Chief Legal Officer, Paul Grewal, announced on July 24 that New York Judge Katherine Polk Failla had approved the joint request for a hearing between the SEC and Coinbase. The two parties have reached an agreement on the timeline for filing various supporting documents and responses.
While Coinbase proposed a 30-day deadline for the SEC to file objecting statements after its opening motion, the SEC suggested 60 days. Judge Failla partially approved the proposal, setting an August 4 deadline for Coinbase's initial briefing and an August 11 deadline for supporting documents. Disagreements over the deadline for the SEC's objection brief were also resolved, with the SEC required to file it on or before October 10, 2023, and Coinbase responding by October 24 or earlier.
In response to the lawsuit, Coinbase announced on July 14 that it would suspend the ability of customers in California, New Jersey, South Carolina, and Wisconsin to mortgage additional assets until further notice. The SEC's lawsuit against Coinbase is one of s ever cryptocurrency-related legal actions the regulatory agency has participated in, with its lawsuit against Ripple Labs being another prominent case in the industry. Coinbase CEO Brian Armstrong plans to meet with US lawmakers to discuss digital asset legislation and related topics, as reported on July 17.
