• The SEC and Coinbase have a pre-motion hearing set for July 13, which will give insight into the potential tone and impact of the litigation.
• The motion was requested by Coinbase in late June to dismiss the complaint filed by the SEC.
• Although Coinbase’s motion refers to its initial public offering in 2021, the SEC is only authorized to review disclosure documents and improve company disclosure.
Coinbase and SEC Set for Pre-Motion Hearing
The U.S. Securities and Exchange Commission (SEC) and crypto exchange Coinbase are set for a pre-motion hearing on July 13 that should provide a sense of the litigation’s tone and its potential impact on the broader crypto industry. The motion was requested by Coinbase in late June, seeking Judge Katherine Polk Failla to dismiss the complaint filed by the regulator on June 5.
Tone of Litigation
The conference is expected to be “procedural and administrative,” though it may also give a sense of the litigation’s tone. In its reply to Coinbase’s motion on July 7, the SEC made strong criticisms of the exchange, including that it was aware of possible violations of securities laws , and it is deliberating “ignoring more than 75 years of controlling law under Howey” in an attempt “to construct its own test for what constitutes an investment contract.”
Initial Public Offering
Coinbase’s motion also refers to its initial public offering in 2021. According to the exchange, the SEC is now seeking charges for activities “exhaustively described” to them previously years prior. However, corporate and securities lawyer Roland Chase stated that federal securities laws governing “going public” processes are based on disclosure; meaning that all that can be done is review documents provided by companies with questions or comments to improve disclosure for investors.
What Could Happen?
Although it is unclear what exactly will happen at this hearing and how long it will take until there are answers, legal sources told Cointelegraph that this could potentially have a big impact on both parties involved as well as many other players within cryptocurrency industry as a whole if something drastic happens during this process or afterwords when court proceedings commence or if any changes occur either way from now until then.
This upcoming conference between Coinbase and SEC should paint us a picture about where this case stands currently as well as what could come out from it afterwards – depending on how each side approach their argumentation inside court room or even before then while they prepare their respective cases further still leading up towards this date or potentially beyond if needed be so until one side prevails over another eventually – however when exactly such thing might happen still remains shrouded in mystery at moment unfortunately enough..