A federal judge has agreed to hear Coinbase’s argument against the U.S. SEC decision through oral arguments. However, Coinbase, the popular cryptocurrency exchange, aims to obtain a court ruling asserting that transactions should not be considered as investment contracts, staking services don’t involve investing funds, and digital assets shouldn’t fall under securities classification.
A court document was filed on the evening of Oct 25 by Judge Katherine Polk Failla. Moreover, in response to Coinbase’s request, she granted an order for an oral argument regarding the defendant’s motion for judgment based on the pleadings.
The Court has set a date of Jan 17 for an oral argument to discuss Coinbase’s motion related to the pleadings. Coinbase argues that tokens inherently fulfill the criteria for an investment contract, whereas transactions involving staking and other services do not qualify as such contracts. Both parties must submit a document outlining their arguments by Nov 17.
The Court’s busy schedule for trials and hearings throughout the year necessitates an oral argument on Jan 17, 2024, at 10:00 a.m. in Courtroom 618 of the Thurgood Marshall Courthouse. The designated location is 40 Foley Square, New York, New York.
Coinbase’s Legal Chief Updates On SEC Battle & Scheduled Hearing
Paul Grewal, Coinbase’s Chief Legal Officer, shared an update on platform X. He announced that a scheduled oral argument for judgment is set to take place on Jan 17. Grewal expressed appreciation for the court’s prompt consideration of the case and affirmed his readiness to address any inquiries from the Court.
Coinbase has requested the Court to dismiss the lawsuit. They argue that the SEC’s allegations regarding securities in relation to digital tokens are too broad. However, Coinbase contends that the SEC’s justification for digital tokens does not apply to digital assets.
Additionally, the Securities and Exchange Commission (SEC) is striving to gain authority over the digital asset sector, even without a mandate from the U.S. Congress. Both stakeholders in the cryptocurrency industry and lawmakers have expressed dissatisfaction with the SEC’s enforcement-focused approach to regulation. These unconventional actions have significantly impacted cryptocurrency prices.
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