The U.S. Securities and Exchange Commission (SEC) has requested a 28-day extension to respond to Coinbase’s appeal in their ongoing legal battle. The SEC cited the involvement of its new crypto task force as a potential factor in resolving the dispute. In a court filing on Friday, SEC attorneys indicated that the task force’s work could play a role in potentially settling the case.
The request follows Coinbase’s appeal of a federal judge’s ruling from last month, where District Judge Katherine Polk Failla found the SEC had presented a plausible case that Coinbase sold unregistered securities on its platform. The SEC has asked a federal appeals court to extend its current response deadline, set for February 14, by four weeks. This extension would allow the crypto task force, led by Commissioner Hester Peirce, to further examine the issues at hand.
Sec requests more time
The SEC’s filing stated, “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. 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.”
This extension request marks the second from the SEC within the week.
Earlier, the SEC sought and received an extension in its case against Binance, citing similar reasons. The legal battle between the SEC and Coinbase dates back to June 2023, when the SEC sued the crypto exchange for allegedly offering unregistered securities. The lawsuit claims that Coinbase never registered as a broker, national securities exchange, or clearing agency, thus evading the securities market disclosure requirements.
The crypto industry is closely monitoring the developments in this case, as the outcome could have significant implications for the future of cryptocurrency regulations in the United States. The new March 14 deadline for the SEC’s response to Coinbase’s appeal could potentially mark a turning point in this ongoing legal battle.
