Last Updated: August 2, 2023
• Coinbase has filed a motion for dismissal in the SEC case against them.
• The exchange is taking an unconventional approach to seeking dismissal, filing a “motion for judgment on the pleadings” under Rule 12c instead of a typical motion to dismiss under Rule 12b.
• This approach will compel the judge to consider other pleadings in the case, including Coinbase’s response to the SEC’s complaint and other documents.
Coinbase Facing SEC Complaint
The United States Securities and Exchange Commission (SEC) has filed a complaint against crypto exchange Coinbase.
Coinbase Seeks Dismissal with Unconventional Approach
On Wednesday, June 28, Coinbase responded to the SEC’s complaint revealing its intent to file for a dismissal of the case. The exchange is taking an unconventional approach to seeking dismissal, filing a “motion for judgment on the pleadings” under Rule 12c instead of a typical motion to dismiss under Rule 12b. This way, it will encourage the judge to consider other pleadings in the case such as Coinbase’s response and attached documents.
Legal Expert Sheds Light on Creative Tactics
Securities lawyer James Murphy pointed out that this strategy allows Coinbase to get helpful documents in front of Judge Failla. These include its S-1 registration statement, congressional testimony from SEC Chair Gary Gensler , transcripts from Binance’s hearing , and Hinman emails . A pre-motion conference is scheduled for July 13th where these motions will be considered by Judge Failla.
Advantages of Creative Strategy
With this creative approach, Coinbase stands more chances of getting their complaints heard before they face any possible sanctions due from not following securities laws properly as alleged by SEC in its complaint against Coinbase.
The outcome of this pre-motion conference could decide how quickly or slowly this dispute between Coinbase and SEC proceeds and how things turn out in favor of either party at last.