Top crypto exchange Coinbase has hinted at its next major move in the SEC lawsuit. In a shareholder letter as part of its second-quarter 2023 earnings call, Coinbase disclosed its next move in the SEC lawsuit.
Coinbase says it will be filing a motion to dismiss the SEC lawsuit in its entirety, in particular because it believes that none of the assets or services in the SEC’s complaint constitute investment contracts under longstanding securities law.
Also, as regards state actions, Coinbase says it is engaging with all of the states and complying with orders issued by four states to restrict new staking by retail customers pending full proceedings on the merits.
Breaking: Coinbase is preparing to challenge the SEC tomorrow (August 4) in a filing to dismiss the lawsuit
— Dan Gambardello (@cryptorecruitr) August 4, 2023
Despite the fact that staking services contributed approximately 4% of its net revenue in Q2 (after adjusting for rewards passed to customers), Coinbase stated its commitment to protecting staking access in all of these states because staking is critical to the operations and development of the crypto industry as a whole.
In a throwback, the SEC brought an enforcement action against Coinbase in June, and 10 states also initiated proceedings about its staking services shortly after.
Today, Aug. 4, is expected to kick off the Coinbase opening brief. Coinbase Chief Legal Officer Paul Grewal expresses his optimism as regards today’s move. “For most people, Friday’s just the day before the weekend. But after this Friday, the neighborhood’ll never be the same,” Paul Grewal stated in a tweet.
According to the scheduling order issued by Judge Failla, the subsequent dates are as follows: the deadline for amicus briefs in favor of Coinbase is Aug. 11. The SEC’s opposition brief is due on Oct. 3.
Amicus briefs in support of the SEC will be submitted seven days later, on Oct. 10. Coinbase’s response brief is anticipated on Oct. 24. An oral argument on the matter will be scheduled after Oct. 24.
According to a recent release, Base, Coinbase’s Layer 2 blockchain, developed with Optimism’s OP Stack, will be fully operational on Aug. 9. Base Layer 2 is currently open for bridging, according to the release.