Coinbase Challenges SEC Over Delay Tactics Before Hearing

• The US Securities and Exchange Commission (SEC) has filed a complaint against Coinbase.
• Coinbase has responded to the SEC’s complaint, seeking dismissal of the case.
• The SEC has responded by moving to strike out part of Coinbase’s defense.

Coinbase Challenges SEC Delays Ahead of Hearing

Coinbase is challenging the US Securities and Exchange Commission’s (SEC) move to strike out its defense in response to a complaint filed by the regulator. In a letter to Judge Katherine Polk Failla, Coinbase lawyers argued that the SEC must prove that no question of fact or law may allow them to succeed in their motion for dismissal. They further argued that any delays should not impact the exchange’s timeline for motions to dismiss. A pre-motion conference is scheduled for Thursday, July 13th which will determine whether Coinbase will be granted permission to file its motions to dismiss.

Background on the Complaint

The dispute between Coinbase and the SEC dates back to December 2020 when Coinbase was accused of violating securities laws by offering unregistered securities on its platform. In June 2021, Coinbase released a statement denying any wrongdoing and asserting its right under major questions doctrine to seek dismissal of the case as it believes it does not fall under federal jurisdiction.

SEC Seeks To Strike Out Defense

In response, the SEC moved last week seeking leave from Judge Failla so it could file motions against certain parts of Coinbase’s defense such as abuse of discretion, equitable estoppel, unclean hands and laches. Crypto legal commentator James “MetaLawMan” Murphy commented that this process is typically just a formality and permission is usually granted in these circumstances.

Coinbase Pushes Against Delays

Coinbase has now responded again pushing against any delays in its proposed schedule for motions to dismiss due out tomorrow morning ahead of Thursday’s crucial hearing.. It argued that should the court grant leave for motions to strike, it should not impact its timeline for filing its own motion for judgment on pleadings which could potentially decide this case once and for all.


The dispute between Coinabse and the US Securities and Exchange Commission looks set continue with both parties pushing hard against each other ahead of Thursday’s hearing where permission will be sought from Judge Katherine Polk Failla over filing motions against certain parts of Coinabse’s defense .