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.

Like this article? Help us with some feedback by answering this survey:

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.