US SEC v Coinbase Lawsuit Pause: SEC Delays Discovery To Post Elections Date

US SEC v Coinbase lawsuit sees unexpected pause as the government agency requests the court for an extension of time to complete discovery. The agency seeks to delay the deadline to complete fact discovery in the case to a post-election date in February.

US SEC Delays Discovery in Coinbase Lawsuit

In a letter to Judge Katherine Faila, the US Securities and Exchange Commission seeks an extension of the deadline to complete fact discovery by four months. The government agency has also submitted a proposed Revised Case Management Plan to extend the deadline from October 18 to February 18 next year.

The SEC asserts that defendants Coinbase Inc and Coinbase Global Inc have agreed to the requested extension. The agency claims the SEC v Coinbase case has extensive discovery requirements, including producing hundreds of thousands of documents.

“Pursuant to that agreement, the SEC is undertaking a review of at least 133,582 unique documents. The requested extension will provide the SEC the necessary time to comply with the Court’s Order, said the US SEC.

This will be the first extension of the deadline to complete fact discovery by any parties in the SEC v Coinbase lawsuit. Interestingly, the agency seeking discovery to delay to a date after the 2024 US presidential elections has raised speculation.

Coinbase CLO Outlines Parallel Progress on Crypto Regulations

The SEC has faced multiple setbacks including regret over using “crypto asset securities” in crypto cases, lawsuits and investigations on SEC Chair Gary Gensler, and loss in Ripple case.

Coinbase CLO Paul Grewal disclosed progress regarding the FOIA suit against FDIC to get the “pause letters” sent to financial institutions indicating that they debanked crypto firms. He added that the Court has ordered them to give up a “Vaughn Index,” a FOIA privilege log.

Lawyer James Murphy, known as “MetaLawMan” and Grewal agreed that applying more pressure would get the truth out regarding Operation Choke Point 2.0 by the regulators.

This is great. Applying more pressure.
Will get harder for the administration to maintain the position that there is no such thing as #OperationChokepoint2.0.
So weird that Congress doesn't do this work.
Why does a public company have to perform Congress's oversight function?

— MetaLawMan (@MetaLawMan) September 19, 2024

Meanwhile, Democrat leaders are against crypto legislation and claims that the bipartisan crypto legislation FIT 21 and the proposed rollback of SAB 121 accounting rules are “particularly harmful pieces of legislation” and the work of “extreme MAGA Republicans.”

Coinbase CLO Grewal asserts that “MAGA”, or just a Representative actually doing his job. Republican Representative Richie Torres questions how Ether is security, highlighting decentralization in the crypto industry and the requirement of separate regulations.