Bitcoin exchange Coinbase employed a “creative” defense tactic, leading to an earlier-than-expected court hearing. The US Securities and Exchange Commission (SEC) is preparing to respond to Coinbase’s initial argument. This has accelerated the legal process.
Coinbase’s early submission of their response, a remarkable 40 days ahead of the original deadline of August 7, led to a revision of the court’s timeline. The has a new deadline of July 13 to respond to Coinbase’s argument. This is a significant departure from the original deadline.
The court added three additional working days for the filing to satisfy the SEC’s request for a delay because of the long Fourth of July weekend. They have rescheduled the pre-trial meeting to a pre-motion conference, set for July 13 at 14:00 UTC. This is earlier than the previously set date of August 24. This change enables early resolution of some issues before the trial starts.
Coinbase’s defense asserts that several coins in question fall outside the SEC’s regulatory scope. They argue this as their main point against the lawsuit. Coinbase legal team claimed that the SEC’s actions were an abuse of discretion. They also argued that it violated due process.
It is not unusual for parties in disputes like this to use a motion for judgment on the pleadings to speed up proceedings. The exchange did this by filing its answer far earlier than scheduled. Legal professionals consider it a “creative strategy” to present evidence directly to the presiding judge, supporting Coinbase’s case.
The importance of a motion for judgment on the pleadings was underlined by MetaLawman, a lawyer and legal pundit on Twitter. The motion allows the judge to review the defendant’s Answer to the Complaint. This is different from a motion to dismiss.