SEC To Present Response To Coinbase's Defense Earlier Than Expected In Legal Battle

(RTTNews) - The U.S. Securities and Exchange Commission or SEC is set to deliver its response to Coinbase's first legal defense on July 13, according to a court order issued on Thursday. The hearing date has been moved up significantly due to Coinbase's "creative" defense strategy, which involved filing its response 40 days ahead of the August 7 deadline.

Under the rules, the SEC was required to file a response to Coinbase's defense by July 3. However, the SEC requested a three-day extension due to the July 4 holiday weekend, which was granted by the court. Additionally, the court converted the pre-trial conference into a pre-motion conference and rescheduled it to July 13 at 14:00 UTC, bringing it forward from the original date of August 24. In a pre-motion conference, the prosecutor or defense attorney requests the court to make a decision on a particular issue before the trial.

In its defense against the SEC's complaint, Coinbase argues that many of the tokens mentioned in the case are beyond the purview of the Commission. Coinbase's counsel recently stated in a letter to the court that the company has responded to the SEC's complaint with several defenses, including the assertion that the action violates due process and constitutes an abuse of discretion. Coinbase believes that the subject matter of the case falls outside the SEC's authority.

Coinbase's decision to expedite the case through a motion for judgment on the pleadings, by filing its response ahead of schedule, is not uncommon in such cases but is regarded as a "creative strategy," according to a legal expert. The exchange's aim is to present documents supportive of its position to the judge through its answer. MetaLawman, a lawyer and Twitter legal commentator, explained that on a motion to dismiss, a judge can only consider the factual allegations in the complaint and any documents attached to or referenced in it. However, on a motion for judgment on the pleadings, the judge can consider other pleadings filed in the case, including the defendant's answer to the complaint. Judge Katherine Polk Failla will decide during the court appearance on July 13 whether Coinbase will be permitted to proceed with this motion.

Typically, permission to proceed with such a motion is granted as a formality, unless the opposing party presents a compelling reason, according to MetaLawman.