The ongoing lawsuit between the Securities and Exchange Commission (SEC) and cryptocurrency giant Coinbase has reached an important milestone with the setting of a legal hearing schedule.
This expansion made public Coinbase Chief Legal Officer Paul Grewal took to Twitter to praise the court’s “quick response” to the issue.
Coinbase vs SEC schedule
Documents filed on July 20 disclose a systematic plan for future legal arguments in this case. Both the defendant, Coinbase, and the plaintiff, the SEC, have filed a joint motion with the court outlining a set of timelines for Coinbase’s anticipated motion for judgment, primarily under Rule 12c of the Federal Rules of Civil Procedure.
| event | due date | Court-approved date | explanation |
|---|---|---|---|
| Coinbase’s motion and opening remarks | August 4, 2023 | August 4, 2023 | Coinbase plans to present initial arguments and defenses against the SEC’s allegations. |
| Amicus Statement in Support of Coinbase Motion | 7 days after Coinbase briefing (August 11, 2023) | August 11, 2023 | An independent party providing additional information or arguments in support of Coinbase’s position will file a brief. |
| SEC Opposition Brief | 30 days after Coinbase briefing (September 3, 2023) | October 3, 2023 | Court-approved date for the SEC to file a counter-argument to Coinbase’s original brief. |
| Amicus Dossier Supporting SEC Opposition | 7 days after the SEC counter-dossier | October 10, 2023 | An independent party providing additional information or arguments in support of the SEC’s position should file a brief. |
| Coinbase response summary | 21 days after the SEC counter-preparation (October 24, 2023) | October 24, 2023 | Coinbase plans to respond to the SEC’s counter-argument and present a counter-argument to the SEC’s position. |
According to the proposals submitted, Coinbase’s motion and opening brief are expected to be submitted by August 4, 2023. Following this, a brief supporting Coinbase’s motion will be filed within a week, and a brief supporting the SEC’s dissenting opinion will be filed one week after the SEC’s dissenting brief. Coinbase’s response is expected to be filed 21 days later.
No agreement has been reached on a deadline for filing an SEC objection. Coinbase has proposed a 30-day deadline from the initial motion and opening brief, while the SEC has proposed a 60-day deadline. At this point, the court set a date for October 3, 2023 for the SEC’s counterpreparation.
The letter read:
“The parties have not been able to reach an agreement regarding the deadline for filing the SEC’s counterpreparation.”
The court order also outlines specific page limits for various filings, with Coinbase’s opening brief and SEC counter-preparation at 30 pages, Coinbase’s response brief at 15 pages, and court brief at 20 pages each.
The SEC has indicated that it will not file a motion to vacate Coinbase’s affirmative defense under Section 12(f) of the Federal Rules of Civil Procedure.
The court order also said it would be standard to suspend the discovery process while the court awaits a decision on allegations that may fully settle or dispose of the case.
For this reason, the court has refused to approve the case management plan submitted by the parties at this time.
In a subsequent tweet, Grewal delved into the importance of a legal timeline under US Code, stating:
“28 USC 1292(b) is silent, but the 10-day time limit has always made sense as an appropriate time limit for seeking DCT certification of an interlocutory appeal order. After all, it’s the time limit for a motion to the Court of Appeals. Tomorrow is 10 days from Judge Torres’ decision to trial.”
With this development, the legal battle entered a critical stage. The incident will be closely monitored by the cryptocurrency community and legal observers due to its potential implications for the broader cryptocurrency industry.
