SEC seeks 4-month extension for fact discovery in Coinbase lawsuit SEC seeks 4-month extension for fact discovery in Coinbase lawsuit
Both parties have agreed to the extension, allowing for a comprehensive review of hundreds of thousands of documents.
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Updated: Sep. 19, 2024 at 8:09 pm UTC
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The US Securities and Exchange Commission (SEC) has requested a four-month extension to complete fact discovery in its lawsuit against Coinbase.
In a letter submitted to Judge Katherine Polk Failla on Sept. 18, the SEC asked to move the current discovery deadline from Oct. 18 to Feb. 18, 2025. The agency said the extension would allow it to review a substantial volume of additional documents.
Extension request
In its letter, the SEC highlighted its ongoing efforts to comply with the court’s discovery requirements, noting that it has produced “hundreds of thousands” of documents for Coinbase. The regulator added that it is currently following a court order and reviewing an additional 133,582 unique documents.
The SEC reached an agreement with Coinbase regarding the search terms and custodians for the review. However, the agency noted that it requires more time to complete the task and highlighted that this marks the first such request in the case.
The SEC’s request also included a proposal to amend the Civil Case Management Plan, extending all subsequent deadlines by four months. The extension would impact future proceedings in the case, including key deadlines related to motions and trial preparations.
Coinbase has consented to both extensions, which would give both parties additional time to prepare for the next phase of the lawsuit.
SEC vs. Coinbase
The lawsuit between the US Securities and Exchange Commission (SEC) and Coinbase began in June 2023, when the SEC accused the exchange of operating as an unregistered securities broker.
The SEC claimed that several digital assets offered on Coinbase’s platform were unregistered securities, violating US securities laws. The case is based on the Howey Test, a legal framework used to determine what constitutes a security.
Coinbase has disputed the SEC’s claims, arguing that the assets on its platform do not meet the definition of securities and that the company complies with existing laws. The case has involved extensive discovery efforts, with both parties agreeing to multiple document reviews.
Coinbase has also filed a motion to dismiss the SEC’s lawsuit, arguing that the watchdog’s claims lack merit and that the agency is overreaching in its regulatory authority over cryptocurrencies. The exchange further argued that the SEC has failed to provide the necessary clarity on which digital assets fall under securities law.
This case is seen as a key legal battle in the regulation of cryptocurrencies in the US and, depending on its outcome, could have broad implications for the industry.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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Coinbase
Coinbase is a digital currency exchange and wallet service that allows individuals to buy, sell, and store digital currencies, such as Bitcoin, Ethereum, and Litecoin.