The U.S. Securities and Exchange Commission (SEC) has requested a four-month extension to complete discovery in its lawsuit against Coinbase.
In a letter filed with Judge Katherine Polk Failla on September 18, the SEC asked to move the current deadline from October 18 to February 18, 2025. The agency said the extension would allow it to XEM a large volume of additional documentation.
Request for extension
In its letter, the SEC highlighted its current efforts to comply with the court’s discovery request, noting that it has provided “hundreds of thousands” of documents to Coinbase . The regulator also said it is currently complying with the court order and XEM an additional 133,582 unique documents.
The SEC has reached an agreement with Coinbase on search terms and who the document custodian is for XEM , but the agency noted that it needs more time to complete the task and stressed that this is the first such request in the case.
The SEC’s request also includes a proposal to amend the Civil Case Management Plan, extending all subsequent deadlines by four months. This extension would impact future proceedings in the case, including important deadlines related to motions and trial preparation.
Coinbase has agreed to both of these extension requests, which will give both sides more time to prepare for the next phase of the lawsuit.
SEC vs. Coinbase
The lawsuit between the U.S. Securities and Exchange Commission (SEC) and Coinbase began in June 2023, when the SEC accused the exchange of operating as an unregistered securities broker.
The SEC claims that some digital assets offered on Coinbase’s platform are unregistered securities, violating U.S. securities laws. The case is based on the Howey test, a legal framework used to determine what constitutes a security.
Coinbase has denied the SEC’s allegations, arguing that the assets on its platform do not meet the definition of securities and that the company complies with applicable laws. The case has undergone extensive discovery efforts, with both sides agreeing to XEM numerous documents.
Coinbase has also filed a motion to dismiss the SEC lawsuit, arguing that the watchdog’s allegations are baseless and that the agency is overstepping its regulatory authority over cryptocurrencies. The exchange also argued that the SEC has failed to provide the necessary clarity on which digital assets fall under securities law.
The case is seen as a major legal battle in the regulation of cryptocurrencies in the United States and, depending on the outcome, could have far-reaching implications for the industry.
