Coinbase’s motion to dismiss its legal dispute with the United States Securities and Exchange Commission (SEC) was rejected by the presiding U.S. district Judge, Katherine Polk Failla.
According to the judge, the SEC presented substantial arguments to corroborate its claims of Coinbase operating as an unregistered broker, trading platform, and clearinghouse. Judge Katherine also gave both parties an April 19 deadline to agree on a case scheduling plan.
Recall that the SEC filed a lawsuit against Coinbase and Binance mid-last year, alleging that both exchanges facilitated the sales of unregistered products, including Cardano (ADA), Solana (SOL) Polygon, (MATIC), etc. Consequently, the trading platforms have been on the case, seeking means to settle with the regulatory body.
Discovery Schedule Up Next In The SEC V.S. Ripple Lawsuit
Taking to her official X handle, FOX Business reporter Eleanor Terrett has hinted at the next possible steps in the already heated legal battle.
Per the FOX reporter, the court case will take a more protracted course as it will linger into a discovery phase. “The Court will set a full discovery schedule and each side can request documents for the discovery process,” Eleanor wrote on X.
She added that the discovery period will be crucial in how the case will progress, as both parties could leverage it to gather significant facts and evidence in pursuit of a favorable outcome.
Citing the ongoing lawsuit between Ripple and the SEC, Eleanor noted that the discovery phase played a significant role in the July 13 ruling that declared XRP a non-security asset.
She remarked, "I remember during the Ripple case, the discovery process acted like a window into the mind of the SEC. We were able to see what the agency was thinking and saying internally about Ripple and the wider crypto industry. The same will apply here."
Coinbase To File A Request For An Interlocutory Appeal
Having established that the discovery period would protract the lawsuit by months, Eleanor disclosed that the only imminent option available for Coinbase is to file for an interlocutory appeal, which depends solely on whether its legal team deems it right.
Meanwhile, commenting on Judge Katherine's ruling, the exchange's Chief Legal Officer, Paul Grewal, expressed disappointment about the verdict. However, he is confident about attaining clarity in the case.
"Today, the Court decided that our SEC case will move forward on most of the claims but dismissed the claims against Coinbase Wallet. We were prepared for this, and we look forward to uncovering more about the SEC's internal views and discussions on crypto regulation," Paul wrote on X.
