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Coinbase and the SEC Face Off in Court
In a high-stakes legal showdown, Coinbase, one of the leading cryptocurrency exchanges, found itself at odds with the U.S. Securities and Exchange Commission (SEC). The SEC has filed a lawsuit challenging Coinbase’s right to operate as a crypto exchange. As the courtroom drama unfolds, both parties are engaging in a battle of legal arguments and principles. Coinbase has invoked the Major Questions Doctrine, a principle that prioritizes Congressional regulatory action over administrative agencies like the SEC, questioning the agency’s jurisdiction over the exchange and similar platforms.
Setting the Scene: A Lighthearted Pre-Motion Conference
The legal confrontation commenced with a 2-hour pre-motion conference held in downtown Manhattan. Despite the gravity of the case, Judge Katherine Polk Failla maintained a lighthearted atmosphere, playfully engaging with both parties without displaying any apparent favoritism. While the urgency and time sensitivity were palpable, Judge Failla reminded the parties that she presides over other cases and encouraged them not to disrupt their summer vacations by hastening the submission of documents.
