The United States Securities and Exchange Commission (SEC) has requested an additional 28 days to review crypto exchange Coinbase’s appeal in its ongoing lawsuit. However, the agency says its new crypto division could potentially end the 20-month legal battle.
“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,” the Feb. 14 filing said.
SEC requests time for “appropriate review”
“Because the Commission’s review of crypto-related issues is ongoing, the Commission requests this additional time to prepare its answer to Coinbase’s petition and for appropriate review,” it said.
Coinbase agreed to the SEC’s request to extend its response deadline from Feb. 14 to March 14. It comes only days after the SEC and crypto exchange Binance requested a judge pause the case between the two parties for 60 days, also citing the crypto task force’s work in developing a regulatory framework.
On Jan. 21, Coinbase asked a US appeals court to rule that crypto trades on its platform aren’t securities in its bid to settle the SEC lawsuit. It argued that understanding if secondary market crypto transactions are investment contracts under securities laws is of “immense importance to the crypto industry.”
The SEC requested until March 14 to answer Coinbase’s petition for permission to appeal. Source: CourtListener
It came just two weeks after Judge Katherine Failla granted an appeal for an order denying Coinbase’s motion for judgment, which she filed in March 2024. Judge Failla ordered all proceedings in the case to be stayed until the Second Circuit ruled on an interlocutory appeal over the order.
Crypto task force raises hopes for industry progress
The legal battle between Coinbase and the SEC has lasted 20 months since the regulator sued the exchange in June 2023 for allegedly offering unregistered securities.
The SEC lawsuit alleged that Coinbase had never registered as a broker, national securities exchange, or clearing agency, evading the disclosure scheme for securities markets.
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Meanwhile, the SEC’s Jan. 21 announcement of a dedicated crypto task force to develop a digital asset framework has raised hopes in the industry that these long-standing lawsuits may finally be resolved.
The task force is led by Commissioner Hester Peirce, often referred to as “Crypto Mom” due to her supportive stance on cryptocurrency regulations.
The task force was announced by Commissioner Mark Uyeda, who is serving as acting SEC chairman.
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