Judge Katherine Polk Faila’s Questions Hint at Her Perspective on Coinbase’s Legal Battle with SEC
In a pre-motion hearing, Judge Katherine Polk Faila of the U.S. District Court for the Southern District of New York questioned both Coinbase and the U.S. Securities and Exchange Commission (SEC) on various topics related to their legal battle. Here are the key points discussed:
- Judge Faila showed skepticism towards the SEC’s position on regulating the crypto industry as a whole, highlighting a “tension” between their claims and their efforts to enforce securities laws violations.
- The SEC confirmed that bitcoin is not considered a security, but did not provide a clear stance on ether.
- Discussion also revolved around the SEC’s prior approval of Coinbase’s S-1, with Coinbase arguing that the SEC’s lawsuit included assets that were already trading on their platform at the time of approval.
- Coinbase and the SEC presented different definitions of Coinbase’s staking program, with Coinbase arguing it is a service contract while the SEC contended it is an investment contract.
- Both sides discussed the major questions doctrine, which Coinbase could potentially use to argue that the SEC is exceeding its regulatory authority.
Judge Faila requested both parties to develop a realistic schedule for the case, considering her busy docket extending into October. She also emphasized the importance of keeping materials within page limits and using footnotes reasonably.
By
By
By
By
By