- The SEC’s motion, filed in a federal appeals court, suggests the task force’s findings could influence the resolution of the Coinbase lawsuit.
- Coinbase has appealed the decision, seeking clarification on how existing securities laws apply to digital assets.
The US Securities and Exchange Commission (SEC) is seeking more time in its legal battle with Coinbase. Late Friday, the regulator filed a motion requesting a four-week extension to respond to Coinbase’s appeal, citing the work of its newly formed crypto task force.
This request followed a similar delay granted in the SEC’s case against Binance, suggesting broader implications for the regulator’s approach to crypto enforcement. The SEC’s request for an extension comes as it re-evaluates its stance on crypto-related issues. The motion, filed in a federal appeals court, pointed to the ongoing work of a crypto task force led by Commissioner Hester Peirce.
According to the filing, the task force’s findings “may affect and could facilitate the potential resolution” of the Coinbase lawsuit and its appellate review. This suggests that the regulator is considering alternative ways to address its dispute with the exchange.
Judge Katherine Polk Failla had previously ruled that the SEC’s case against Coinbase was plausible, affirming that the exchange may have engaged in the sale of unregistered securities.
See Related: Coinbase Challenges SEC: Can Secondary Crypto Trades Be Securities?
Coinbase Appeals Decision
In response, Coinbase appealed the decision, requesting the court to clarify how existing securities laws apply to digital assets. The SEC’s latest move indicates it may be reassessing its arguments in light of the crypto task force’s input.
This is the second time in a week the SEC has sought to delay proceedings in a major crypto case. Earlier, the agency and Binance jointly requested a 60-day stay in their lawsuit, arguing that the pause could lead to a resolution. The judge overseeing that case reportedly granted the request.
For Coinbase, the delay could be a positive sign, hinting that the SEC might be open to negotiations. However, it remains unclear whether the regulator is considering a full settlement or simply refining its legal arguments before proceeding further.
The SEC’s request for an extension pushes its response deadline to mid-March, giving it more time to align its approach with the findings of its internal crypto task force. If the regulator and Coinbase do reach a resolution, it could mark a turning point in crypto regulation, potentially leading to a clearer legal framework for digital assets.
