Coinbase vs. SEC lawsuit: Regulatory body set to face exchange in court on August 4

Coinbase will be facing the Securities and Exchange Commission for initial hearings on August 4.
The SEC will be given until October 3 to respond to the cryptocurrency exchange’s opening brief.
Coinbase stock has seen a sharp drop in the last three daily trading sessions, with COIN falling by 11%, losing the $100 support.

Coinbase is next in line to fight the Securities and Exchange Commission (SEC) after being sued for allegedly violating Securities law. Both parties are set to appear in court soon as the United States’ regulatory landscape witnesses another potential major case following the Ripple lawsuit.

Coinbase and SEC to meet in court

Coinbase and the SEC have been issued an order by Judge Failla to present their briefs in court over the next few weeks. The date given to the Defendant - Coinbase - is for August 4, when it will be giving its opening brief. Any amicus briefs in support of Coinbase’s motion are due by August 11.

The SEC will then have 21 days, as per the deadline agreed upon and proposed by both parties, to put forth its Opposition brief, which puts the date at October 3. To this brief, Coinbase will have until October 24 to file a reply.

Coinbase opening brief scheduled for August 4

Gary Gensler and the SEC have been facing criticism from the crypto community, which intensified over the last couple of days. As Ripple partially won the lawsuit, the need and demand for a proper set of regulations amongst many lawmakers surged, which led to over three new bills being introduced in the Senate.

The first bipartisan amendment to the National Defense Authorization Act for Fiscal Year 2024 was introduced by Senators Warren, Marshall, Lummis and Gillibrand last week. This was followed by Senators Jack Reed, Mike Rounds, Mark Warner and Mitt Romney introducing a bill entitled Crypto-Asset National Security Enhancement and Enforcement Act of 2023 (CANSEE).

The Financial Services Committee (FSC) introduced the Financial Innovation and Technology for the 21st Century Act, on July 20, which is aimed at establishing a regulatory framework for digital assets. This bill was endorsed by the Chief Executive Officer and Founder of Coinbase, Brian Armstrong, who stated,

“If we want to be taken seriously as a nation, we have to act seriously as a nation. This legislation would finally put the US into the global conversation on digital asset regulation. Congress should enact this without delay.

COIN bull run comes to an end

The cryptocurrency exchange’s stock was riding a bullish wave for the past couple of weeks, during which time the value of COIN shot up by more than 133% from $47 to $110. However, the series of green candlesticks came to a halt on July 20.

COIN 1-day chart

Since then, the price of the exchange’s stocks has come down by more than 11% to trade at $97 at the time of writing. Apart from the external market influence, the share price could also be impacted by Bitcoin price falling below $29,000 during the intra-day trading hours on Monday.

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