- The U.S. Securities and Exchange Commission (SEC) has requested a 28-day extension to respond to Coinbase’s appeal request
- The filing suggests the SEC’s newly formed crypto task force may influence the agency’s stance on the case
- The SEC has also jointly filed to halt the Binance case, citing similar legal concerns about regulatory oversight
The legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC) has taken another turn as the SEC formally requested a 28-day extension to file its answer to Coinbase’s petition for permission to appeal. The case, which stems from a March 2024 court ruling that partially denied Coinbase’s motion for judgment, could shape the future of cryptocurrency regulation in the U.S. The request came the day after the SEC moved to delay proceedings against Binance, again citing the work of the new crypto task force.
Crypto Task Force Already Having an Impact
In a motion filed on February 14, 2025, the SEC asked the U.S. Court of Appeals for the Second Circuit to extend its deadline for responding to Coinbase’s petition until March 14, 2025. The filing cites the agency’s ongoing efforts to refine its regulatory approach to digital assets, particularly through the newly established Crypto Task Force:
The crypto task force’s work may affect and could facilitate the potential resolution of both the underlying district court proceeding and potential appellate review, conserving judicial resources.
The request follows Coinbase’s January 17, 2025, petition, which seeks appellate review of the lower court’s decision to partially deny Coinbase’s attempt to dismiss the SEC’s allegations that the company engaged in unregistered securities transactions.
Coinbase Agrees With SEC Approach
Coinbase has consented to the SEC’s extension request, but legal analysts believe the request underscores deeper uncertainty within the SEC regarding how to regulate digital assets effectively. The filing came hot on the heels of the SEC moving to halt the ongoing Binance case, raising similar concerns about regulatory authority and the classification of crypto assets as securities.
There remains optimism in the crypto space that the Trump administration’s SEC will drop the cases against Coinbase and Binance as the task force works to provide clear regulations for the crypto sector, regulations that would then negate the lawsuits.
As the March 14, 2025, deadline approaches, industry stakeholders will watch closely to see whether the SEC’s evolving stance on cryptocurrency enforcement will lead to a shift in the legal landscape.
