SEC Requests 28-Day Extension to Respond to Coinbase Appeal Amid Legal Battle
The United States Securities and Exchange Commission (SEC) has formally requested an additional 28 days to respond to Coinbase’s ongoing appeal in their prolonged legal case. The SEC stated that its newly formed crypto task force may play a significant role in resolving the 20-month standoff.
In a filing dated February 14, the SEC emphasized that this specialized task force’s work could potentially lead to the resolution of both the underlying district court case and the anticipated appellate review.
Ongoing Crypto Review Prompts Deadline Extension Request
“The Commission’s review of crypto-related issues is still ongoing. The SEC requests additional time to prepare an adequate response to Coinbase’s petition and to ensure appropriate review,” the agency explained.
Coinbase has agreed to extend the SEC’s response deadline from February 14 to March 14. This request follows a recent motion by the SEC and crypto exchange Binance to pause their case for 60 days, citing the crypto task force’s efforts in developing a regulatory framework.
On January 21, Coinbase urged a U.S. appeals court to rule that the crypto transactions on its platform are not classified as securities. The company contended that clarity on whether secondary market transactions for cryptocurrencies fall under securities laws is crucial for the crypto industry’s future.
This appeal came two weeks after Judge Katherine Failla granted an interlocutory appeal for an earlier order that had denied Coinbase’s motion for judgment in March 2024. Judge Failla also stayed all proceedings in the case until the Second Circuit Court issues a ruling on the appeal.
Crypto Task Force Brings Hope for Resolution
Coinbase’s legal battle with the SEC has been ongoing since June 2023, when the regulator sued the crypto exchange for allegedly offering unregistered securities. The SEC claimed that Coinbase operated without registering as a broker, national securities exchange, or clearing agency, thus avoiding the regulatory disclosure requirements for securities markets.
The SEC’s announcement on January 21 of a dedicated crypto task force has raised hopes that these long-standing lawsuits may finally see resolution. The task force, headed by Commissioner Hester Peirce—known as “Crypto Mom” due to her favorable stance on crypto regulations—aims to develop a comprehensive digital asset framework.
Commissioner Mark Uyeda, currently serving as acting SEC chairman, announced the formation of the task force, signaling a renewed focus on crypto regulation and oversight.
