In a recent development, the digital asset exchange Coinbase and the United States Securities and Exchange Commission (SEC) have come to an understanding regarding the sharing of documents in their ongoing legal battle. Both parties have submitted a Stipulation and Proposed Protective Order, which essentially means they have agreed on certain terms and conditions, and the court has approved them.

The agreement outlines how the parties will handle requests and production of documents. They have pledged to work together in good faith to address any issues that may arise from the documents produced. If there are any questions or disputes regarding the documents, the parties have agreed to meet and discuss them in a cooperative manner. If they are unable to resolve the issue, they will present it to the court, following the appropriate procedures.

In the event that a party inadvertently shares protected information, they must notify the other party within a reasonable time, specifying the information and the basis for the claim of privilege. The receiving party then has five days to return, destroy, or sequester any copies of the protected information.

This development comes amidst the ongoing lawsuit between Coinbase and the SEC, which has sparked debates within the crypto community. Last week, Coinbase filed an interlocutory appeal, seeking to clarify whether a digital asset transaction that poses no obligation to the issuer can be considered an investment contract. Previously, Coinbase's request to dismiss the SEC's suit was denied, leading to the appeal.

The SEC continues its regulatory efforts in the crypto sector, while firms like Coinbase have vowed to fight for regulatory clarity for the wider market. This agreement on document sharing is a step forward in the legal battle, as both parties work to resolve their differences and provide clarity for the crypto industry.