Coinbase’s SEC Clash Faces First Major Test as U.S. Judge Weighs Longshot Dismissal

Coinbase is about to make its case in a federal courtroom that the U.S. Securities and Exchange Commission (SEC) is wrong about its legal arguments that the crypto exchange has been trading unregistered securities. What the New York judge does next could have serious consequences for the wider industry’s clashes with the regulator.

The company has asked Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York to throw out the case – a longshot request, but one that she may be taking very seriously. She’s booked four hours of back-and-forth with Coinbase and the SEC on Wednesday – an unusual depth of oral arguments for such a motion, which often tends to favor the government side in this kind of enforcement case.

“When the government is suing people they usually don’t lose on summary judgment motions,” said Patrick McCarty, a financial consultant and former SEC lawyer who teaches crypto classes at Georgetown Law. “But it’s possible – very possible.”

Source: Coinbase’s SEC Clash Faces First Major Test as U.S. Judge Weighs Longshot Dismissal