The Securities and Exchange Commission (SEC) in the United States has asked for a four-month extension to complete fact discovery in the lawsuit against Coinbase. If approved, the extension would push the current discovery deadline from October 18 to February 18, 2025, giving the SEC more time to examine a substantial amount of additional documentation.
In a letter addressed to Judge Katherine Polk Failla, the SEC mentioned that it has already furnished hundreds of thousands of documents to Coinbase and is currently scrutinizing an additional 133,582 distinct documents as part of the ongoing discovery process. The request for extension, the first of its kind in this case, is aimed at ensuring thoroughness and adherence to court mandates.
Both parties have consented to the extended timeline, which will also impact subsequent deadlines related to motions and trial preparations in this legal dispute.
Legal analysts have highlighted the significance of this lawsuit, which commenced in June 2023, in terms of its potential influence on cryptocurrency regulation in the US. The SEC alleges that Coinbase has operated as an unregistered securities broker, while Coinbase contends that the assets traded on its platform do not fall under the securities category. The case involves extensive discovery endeavors and legal discussions revolving around the Howey Test, a criteria used to ascertain securitized assets.
Ultimately, the verdict in this case may have far-reaching consequences for the broader cryptocurrency industry, setting the tone for future regulatory strategies and defining digital assets within US securities regulations.
