Why the SEC Postponed the Coinbase Case—And Why It Matters

The continuing battle between the US SEC and Coinbase has taken an sudden flip. Most just lately, the SEC requested a four-month extension of the actual fact discovery deadline, pushing it again to February 2024 – proper after the presidential election. This delay has led to hypothesis, particularly because the SEC faces rising challenges within the crypto area.

Have the roles actually been reversed? Let’s discover out.

Why the SEC is urgent pause

In a letter to Decide Katherine Failla, the SEC requested for added time to evaluate greater than 133,000 paperwork, citing the intensive discovery course of within the case towards Coinbase. Each Coinbase Inc. as Coinbase International Inc. have agreed to this extension, which can give the SEC respiratory room to satisfy the court docket’s deadlines. That is the primary delay within the case, and its timing – so near the elections – has raised eyebrows.

Coinbase’s CLO is preventing again

Coinbase Chief Authorized Officer Paul Grewal just lately shared an vital replace on X relating to the corporate’s authorized battle with the SEC. He introduced updates on the FOIA lawsuit towards the FDIC, aiming to disclose “stop letters” despatched to monetary establishments that debank crypto firms. Additional on, Grewal, together with legal professional James Murphy (MetaLawMan), highlighted a key proven fact that regulators are withholding vital info, referencing the controversial “Operation ChokePoint 2.0.”

Political warmth over crypto laws

The delay within the lawsuit comes amid rising political pressure over crypto laws. Democratic leaders have criticized crypto laws resembling FIT 21, labeling it dangerous and linked to “MAGA Republicans.” However, Republican Rep. Richie Torres continues to problem the SEC’s place, particularly round Ether’s classification as a safety, and requires clearer and extra crypto-friendly laws.

With the SEC below hearth and the Coinbase case postponed, the stage is about for main developments within the coming months.