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. 

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.