Coinbase vs SEC : July 13 Hearing Scheduled after Exchange’s ‘Creative’ Response

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Coinbase’s court hearing date has been unexpectedly advanced as a result of a “creative” defense maneuver. The exchange filed its response a remarkable 40 days ahead of the August 7, 2023 deadline, prompting an earlier scheduling of the hearing.

The U.S. Securities and Exchange Commission (SEC) is set to present its response to Coinbase’s initial legal defense on July 13, as per a recent court order. This hearing date comes as a surprise, as Coinbase employed a “creative” defense strategy by submitting its response a notable 40 days ahead of the original August 7 deadline.

The SEC was required to submit a response to Coinbase’s defense by July 3, but due to the July 4 holiday weekend, the SEC requested a three-business-day extension. The court granted this extension, allowing the SEC additional time to file its response.

Furthermore, the court has transformed the pre-trial conference into a pre-motion conference and rescheduled it to July 13 at 14:00 UTC, moving it up from its original date of August 24. In a pre-motion conference, either the prosecution or defense counsel submits an application to the court, seeking a decision on a specific matter prior to the trial.

Coinbase has countered the SEC’s complaint by asserting that a significant number of the tokens emphasized in the case are beyond the regulatory scope of the Commission.

Coinbase employed a creative defense tactic:

In a recent letter to the court, Coinbase’s counsel stated that the exchange has responded to the SEC’s complaint with multiple defenses, contending that the action violates due process and represents an abuse of discretion. However, the counsel highlighted a more fundamental issue with the SEC’s case: the subject matter lies beyond the authority of the SEC. This, according to Coinbase’s counsel, warrants a judgment on the pleadings in favor of Coinbase.

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Filing its response 40 days ahead of schedule as a motion for judgment on the pleadings, Coinbase’s strategy to expedite the case is viewed as a “creative tactic” by a legal expert. According to MetaLawman, a lawyer and Twitter legal commentator, this approach allows Coinbase to present supportive documents to the Judge through its Answer, a move intended to bolster its position.

MetaLawMan clarified that during a motion to dismiss, a judge is limited to considering the factual allegations within the Complaint and any accompanying or referenced documents. However, in the case of a motion for judgment on the pleadings, the judge can take into account additional pleadings filed in the case, including the defendant’s Answer to the Complaint.

On July 13, during the court appearance, Judge Katherine Polk Failla will make a crucial decision regarding Coinbase’s motion, determining whether the exchange will be granted permission to proceed with the said motion.

According to MetaLawMan, granting permission for Coinbase to proceed with the motion is typically a formality, unless compelling reasons are presented by the opposing side.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

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