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Coinbase faces setback in legal battle against SEC

TL;DR

  • Judge Failla denied Coinbase’s motion to dismiss the SEC’s case, alleging unregistered activities.
  • Ripple’s legal officer is optimistic about the outcome despite the setback.
  • Coinbase prepares for a prolonged legal battle, focusing on the discovery phase for strategic advantage.

In the latest intervention, Judge Failla from SDCNY denied operator Coinbase’s motion to dismiss the tussle between Coinbase and the regulatory body, the Securities and Exchange Commission (SEC). SEC maintains that Coinbase has acted as an unlicensed and unregistered exchange, broker, and clearing agency. Coinbase SEC checks its Staking Program to further check these activities, thus accusing it of conducting unregistered offers and sales of securities.

Despite Legal proceedings, Ripple CLO stays optimistic and committed to improving the education sector of the local community.

However, Stuart Alderoty, Ripple’s Chief Legal Officer, remains positive about the case as he believes some meaningful successes throughout the trial would help them prevail. Alderoty overshadowed that the legal system is merely in its infant stage and reiterated the confidence that everything will turn out well. 

Coinbase vs SEC

Judge Failla’s verdict directed the Court to schedule the full discovery and, thus, to gather the documents required in the discovery procedure. Terry’s story, in particular, drew attention to it. According to sources who are privy to the matter, investigators believe this phase might subvert the case, documenting certain instances of the case analogous to the Ripple case.

The target of the discovery process in the Coinbase case is focused on gathering the internal weight of SEC arguments that can be used in the summary judgment phase. The trial request and brief filing exchange depict the litigation going to the million years. Likewise, Coinbase can invoke the interlocutory appeal vis-à-vis the non-granted parts of the dismissal motion per the authority of its legal leaders.

Strategic Importance of Discovery Phase

Prominent Ethereum community member and defense lawyer Carlo. Eth emphasized the strategic significance of the discovery phase for Coinbase. This phase presents an opportunity for the exchange to better understand the SEC’s perspectives and positions, potentially influencing the case outcome.

At press time, Coinbase’s stock (COIN) traded at $256.7, marking a decline of approximately 9% since the news broke. The market reaction reflects investor sentiment regarding the implications of the company’s legal developments.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Ibrahim Abdulaziz

A fervent advocate, Ibrahim shares his wealth of knowledge on crypto and blockchain technology in an engaging and informative style. He frequents places where influencers gather for his next scoop. His vision is that the decentralized nature, security features, and potential for financial inclusion will drive widespread massive crypto adoption.

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