A New York judge recently allowed the US Securities and Exchange Commission (SEC) to continue their lawsuit against Coinbase. This means the ongoing legal dispute between the two organizations is far from reaching a resolution. Despite this setback, the leading US crypto exchange is anticipated to maintain its defense throughout the legal proceedings.
What Comes Next in the Case?
The US SEC is alleging that Coinbase violated securities laws by failing to register as a securities business. The next phase in the Coinbase case will likely involve setting a complete discovery schedule in court, enabling both parties to request relevant documents and evidence. This process may reveal information that either reinforces or weakens their respective arguments.
While Coinbase will likely collect evidence to support its defense, they may scrutinize the SEC's actions and internal communications. On the other hand, the SEC could seek evidence to substantiate their allegations against Coinbase. According to Fox Business journalist Eleanor Terrett, the discovery process in the Ripple case lasted several months and involved multiple legal stages before trial proceedings began. Overall, the legal battle is expected to extend for at least a year.
Could an Interlocutory Appeal be on the Horizon?
Terrett suggested that Coinbase might pursue an interlocutory appeal, depending on advice from their legal advisors, against the denial of the motion to dismiss certain parts of the case. However, obtaining interlocutory appeals before final judgments is notoriously challenging. The case may eventually involve appeals to higher courts, with a potential decision from the US Supreme Court. The case's outcome carries significant implications for Coinbase and the broader cryptocurrency industry.
During the past few days, the global digital assets market has experienced increased selling pressure. Nonetheless, on Thursday, the total cryptocurrency market capitalization slightly declined to $2.64 trillion.
