- Coinbase and SEC submitted a joint Stipulation and Proposed Protective Order to the court.
- The agreement includes provisions for resolving disputes and handling inadvertent sharing of protected information.
- Coinbase has moved to challenge the SEC’s interpretation of investment contracts.
Coinbase and SEC reach a consensus on handling sensitive documents in their ongoing legal battle.
Stipulation and Proposed Protective Order Submitted
U.S.-based exchange Coinbase and the U.S. Securities and Exchange Commission (SEC) have reached a consensus on handling sensitive documents. In particular, on May 24, a Stipulation and Proposed Protective Order was submitted in a letter to presiding Judge Katherine Polk Failla.
This agreement ensures that the court can enforce the terms should any breaches be alleged in the lawsuit between the SEC and Coinbase. In the letter, both parties acknowledged their commitment to good faith cooperation regarding document requests and production. The agreement outlines a process for addressing any questions related to reductions, categories, metadata, or assertions of privilege in the documents produced.
Provisions for Inadvertent Sharing of Protected Information
Additionally, the agreement includes a clause for inadvertent sharing of protected information, requiring the disclosing party to notify the other promptly, specifying the information and the basis for the claim of privilege. The receiving party is then obligated to return, destroy, or sequester any copies of the protected information within five days of receipt.
Coinbase Challenges SEC’s Interpretation of Investment Contracts
Meanwhile, Coinbase challenged the SEC’s interpretation of investment contracts in the ongoing legal dispute on Friday, arguing that the SEC is bypassing established case law and the Howey test.
Coinbase’s appeal contests the March ruling that supported the SEC’s claim that Coinbase’s staking program is an unregistered securities offering. The exchange asserted that investment contracts require a post-sale contractual commitment, which the SEC disputes.
Inconsistencies in SEC’s Approach
The case highlights inconsistencies with the SEC’s approach in similar cases. Notably, the SEC’s lawsuit from June 2023 accuses Coinbase of securities law violations, including listing 13 cryptocurrencies as securities.
Accordingly, Coinbase actively campaigns for crypto industry defense through initiatives like the Stand With Crypto campaign and a political action committee.
Conclusion
The ongoing legal battle between Coinbase and the SEC underscores the complexities and evolving nature of cryptocurrency regulations. The recent agreement on handling sensitive documents marks a step towards more structured litigation, while Coinbase’s challenge to the SEC’s interpretation of investment contracts could set significant precedents for the industry. As the case progresses, stakeholders will be keenly observing the outcomes and their implications for the broader crypto market.
