In the ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC), a federal judge has signed two stipulation and protective orders governing the discovery phase of the case.

Court Approves Proposed Orders

Judge Katherine Polk Failla has approved the proposed orders submitted by Coinbase and the SEC last week. These orders aim to ensure the confidentiality of certain information revealed by both parties during the discovery process, including financial transactions, depositions, and other key details.

Protecting Confidential Information

The protective order will assure that all confidential details remain hidden from the public, allowing the parties to share information without compromising sensitive data. Additionally, the court has approved a proposed stipulation and order under Fed. R. Evid. 502(d), which governs the unintentional production of certain documents by Coinbase and the SEC during the course of the proceedings.

Coinbase's Challenges to SEC's Authority

Coinbase has challenged the SEC's ability to disclose confidential documents received in the litigation and has also challenged the regulator's authority to regulate certain digital asset transactions as "investment contracts," even when those transactions lack explicit contractual elements. Coinbase is leveraging the ongoing Ripple case as a crucial point of reference in its arguments.

Coinbase's Request to Dismiss Dismissed

Coinbase's request to dismiss the SEC's suit was previously dismissed, prompting the exchange to take steps to appeal the decision. Meanwhile, the SEC has continued its regulatory drive on the crypto sector, while firms like Coinbase have vowed to fight for regulatory clarity.

Shifting Regulatory Landscape

The recently passed Financial Innovation and Technology for the 21st Century (FIT21) Act by the U.S. House of Representatives has shifted some authority from the SEC to the Commodity Futures Trading Commission (CFTC), potentially impacting the ongoing legal battle between Coinbase and the SEC.

The agreements reached between Coinbase and the SEC on the discovery process, as well as the ongoing legal challenges, highlight the complex and evolving regulatory landscape surrounding the cryptocurrency industry in the United States.