- Meeting date set for July 13
- Coinbase implemented a cunning strategy and did not let the commission buy time
The US Securities and Exchange Commission (SEC) is required to appear in court on July 13 over the Coinbase lawsuit. This will be the first meeting at which the regulator will give an answer to the judicial protection of the crypto exchange.
It is important that initially the hearings were to begin no earlier than August-September. But Coinbase has accelerated the date thanks to an interesting legal practice. They submitted their response 40 days before the August 7, 2023 deadline.
The essence of the elegant strategy of the crypto exchange is explained by a blogger-lawyer with the pseudonym MetaLawMan. Instead of the typical motion for a 12b rejection, Coinbase filed a different type of document – “motion for judgment on the pleadings” (12c). In simple terms, an atypical petition allows you to demand a response to the complaint from the second party (in our case, this is the SEC). In addition, the 12c standard document has a strict deadline.
Based on the case, the SEC has 2 weeks to prepare a response to the complaint. This takes the commission time “to maneuver”. However, according to the law, the defendant may not appear at the meeting if there are good reasons for that.
Coinbase filed a complaint against the SEC regarding 12 cryptocurrencies that the commission declared securities. The company believes that the SEC has been aware of the exchange’s digital asset transactions for years. Therefore, the regulator exceeds its powers.