Binance and CZ fight back with a motion of dismissal
Following the lawsuits against Binance from the SEC, the exchange and its CEO have filed a motion of dismissal.
The lawsuit involving the United States Securities and Exchange Commission (SEC) against leading cryptocurrency exchange Coinbase will proceed with a hearing where both parties will be able to voice their initial arguments in the case.
Announcing the update, Coinbase’s chief legal officer Paul Grewal tweeted that the New York judge of the case, Katherine Polk Failla, has approved the request from both the SEC and Coinbase:
Judge Failla has issued a scheduling order for our Rule 12(c) motion for judgment on the pleadings. We appreciate the Court’s prompt attention to this matter. pic.twitter.com/XhR4hy0FDf
— paulgrewal.eth (@iampaulgrewal) July 23, 2023
The initial document from both parties pointed to an agreement that has been concluded for Coinbase’s motion and opening brief. The brief will be due on August 4th 2023. Other time frames for supporting documents and responses have also been outlined.
There had been no due date set for the SEC’s brief. To this, the crypto exchange proposed 30 days after its opening motion; the SEC has proposed 60 days.
New York judge Failla responded by granting a part approval, which has included the 4th of August for the initial brief and the 11th of August for the supporting documents. The SEC opposition’s brief has been set for October 10th October.
Is Coinbase still operating while in legal dispute?
On July 14th, Coinbase announced that it would be pausing the staking programme for customers in California, New Jersey, South Carolina and Wisconsin. According to the exchange, compliance is the priority whether or not it agrees with the allegations:
“We strongly disagree with any allegation that our staking services are securities. But we will fully comply with the preliminary state orders where required, even though that comes before we’ve had an opportunity to defend ourselves… We stand by staking. Today almost every major blockchain relies on staking because it is open, secure, and environmentally friendly. Americans in every state deserve access to the same technology and economic opportunities as people everywhere.”