SEC vs. Coinbase: Coinbase attorney’s arguments fail to convince judge

• SEC vs. Coinbase hearing on Thursday addresses the exchange’s demand that Chair Gary Gensler should testify.
• Coinbase Attorney Kevin Schwartz’s arguments fail to convince Judge Katherine Polk Failla.
• Judge says she is troubled by hearing that SEC is stonewalling, asks parties to work together.

Judge Katherine Polk Failla, who presided over the Securities & Exchange Commission (SEC) vs. Coinbase hearing early on Thursday, was troubled by the state of affairs and has asked the parties to work together. While Coinbase’s attorney argues that SEC Chair Gary Gensler’s statements prior to being sworn into office are relevant to the case, the judge found the argument “less helpful.”

SEC closer to partial win in lawsuit against Coinbase

SEC alleged that Coinbase and its holding company committed securities law violations by failing to register its platform as an exchange, broker and clearing agency. The financial regulator alleges that Coinbase violated Exchange Act Sections 5, 15(a), and 17A(b).

In a hearing early on Thursday morning, Judge Katherine Polk Failla listened to arguments from both sides. Judge Failla found that Coinbase attorney Kevin Schwartz’s arguments were not convincing and felt troubled by the SEC’s “stonewalling.”

The Judge asked the two parties to work together.

While Coinbase attempted to convince the court that SEC Chair Gary Gensler’s statements prior to being sworn into office are relevant to the case, the judge did not find the argument convincing.

Reporter Nikhilesh De is covering the hearing live in tweets on X.

Judge: “I do have quite strong views about the utility or probative-ness of statements made by Mr Gensler before he became chair”

I actually prefer that you and your team begin with a motion to compel rather than a motion to quash, she said to Coinbase atty Kevin Schwartz

— @ (@nikhileshde) July 11, 2024

The SEC is closer to a partial victory in the hearing as Coinbase attorney Kevin Schwartz’s arguments failed to shed light on the relevance of Chair Gary Gensler’s statements on crypto prior to taking office.

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