The United States Securities and Exchange Commission (SEC) is facing a significant challenge in its ongoing legal battle with crypto exchange Coinbase. Lawyers for the SEC have requested a four-month extension, until February 2025, to produce “hundreds of thousands of documents” as part of the discovery proceedings.

The request was made in a filing on September 18 in the US District Court for the Southern District of New York. Initially, the SEC was expected to produce documents by October 18, but a motion to compel discovery by Coinbase led to the extension request. The SEC stated that they are reviewing at least 133,582 unique documents and need the additional time to comply with the court’s order.

If granted by Judge Katherine Failla, the SEC would have until February 18 to produce documents related to fact discovery. Expert discovery, including depositions and related documents, could have a deadline of April 22. This timeline suggests that a jury trial, if pursued, would not take place until 2025.

The SEC’s lawsuit against Coinbase is part of a broader crackdown on exchanges allegedly offering and selling tokens as unregistered securities. In recent years, the SEC has pursued similar cases against Ripple Labs and Terraform Labs, resulting in significant settlements. Ongoing enforcement cases against other exchanges like Binance and Kraken indicate a continued focus on regulatory compliance in the crypto industry.

While the SEC battles crypto exchanges in courtrooms, US lawmakers are also considering the regulator’s role in regulating digital assets. A recent meeting of the House Subcommittee on Digital Assets, Financial Technology, and Inclusion questioned whether the SEC’s approach to crypto under Chair Gary Gensler is politicized.

The outcome of these legal battles and regulatory discussions could have far-reaching implications for the crypto industry. It remains to be seen how changes in SEC leadership, particularly following the 2024 US election, will impact the ongoing enforcement actions and court proceedings.

As the SEC faces off against Coinbase and other crypto firms, the industry is closely watching the legal developments unfold. The outcome of these cases could shape the future of crypto regulation and compliance in the United States.