Thu, September 19, 2024 at 09:37

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about the ongoing lawsuit between the US SEC and Coinbase.

  • The SEC has requested an extension to complete fact discovery until February next year.

  • 
• Annie

  • Oh, really?

  • Why do they need an extension?🤔

  
• 

  Kang-hoon

  • The SEC claims that the case has extensive discovery requirements, including the production of hundreds of thousands of documents.

  • They are currently reviewing at least 133,582 unique documents.

• Annie

  • Wow, that's a lot of documents!😮 So, both Coinbase Inc and Coinbase Global Inc agreed to this extension?

  
• ADward

  • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

  
• 

  Kang-hoon

  • Yes, both parties have agreed to the requested extension.

  • This will be the first extension of the deadline to complete fact discovery in this case.

• Annie

  • Interesting.

  • Do you think the timing of the extension, which is after the 2024 US presidential elections, is significant?

  
• 

  Kang-hoon

  • Indeed, the timing has raised some speculation.

  • 

  • Some believe it might be a strategic move to avoid any political influence on the case.

• Annie

  • That makes sense.

  • What about Coinbase's progress on crypto regulations?

  • Any updates there?

  
• 

  Kang-hoon

  • Coinbase's Chief Legal Officer, Paul Grewal, has disclosed progress regarding their FOIA suit against the FDIC.

  • They are seeking the pause letters sent to financial institutions that debanked crypto firms.

• Annie

  • Pause letters?

  • What are those?🤔

  
• 

  Kang-hoon

  • Pause letters are communications from the FDIC to financial institutions, advising them to halt services to crypto firms.

  • The court has ordered the FDIC to provide a Vaughn Index, which is a FOIA privilege log.

• Annie

  • I see.

  • And what about the broader implications for crypto regulations?

  
• 

  Kang-hoon

  • Lawyer James Murphy and Paul Grewal believe that applying more pressure will reveal the truth about Operation Choke Point 2.0, a supposed regulatory effort to debank crypto firms.

• Annie

  • Operation Choke Point 2.0?

  • That sounds serious.

  • Why isn't Congress looking into this?

  
• 

  Kang-hoon

  • That's a good question.

  • Murphy has criticized Congress for not performing its oversight function, leaving public companies like Coinbase to take on that role.

• Annie

  • That's quite a burden for a company.

  • What about the political landscape?

  • Any opposition to crypto legislation?

  
• 

  Kang-hoon

  • Yes, Democrat leaders are against crypto legislation, claiming that bipartisan efforts like FIT 21 and the rollback of SAB 121 accounting rules are harmful and driven by extreme MAGA Republicans.

• Annie

  • And what is Coinbase's stance on this?

  
• 

  Kang-hoon

  • Grewal argues that these efforts are not just MAGA-driven but are about representatives doing their job.

  • Republican Representative Richie Torres has also questioned the classification of Ether as a security, advocating for separate regulations for decentralized crypto assets.

• Annie

  • That's a lot to take in.

  • So, do you think this news is good or bad for the market?

  
• 

  Kang-hoon

  • I would consider this news to be a negative development.

  • The delay in discovery prolongs the uncertainty surrounding the case, which is likely to keep market participants cautious.

  • Additionally, the political and regulatory challenges add further complexity and risk to the crypto market.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.