Coinbase Lawsuit Twist: SEC Seeks 28-Day Extension

The SEC requested 28 extra days to respond to Coinbases appeal, extending its deadline to March 14, 2025.
The SECs new crypto task force might influence the lawsuits outcome.
Coinbase agreed to the SECs extension request, showing cooperation in the case.

The United States SEC has requested a 28-day extension to respond to Coinbases appeal in their prolonged legal battle. Filed on February 14, 2025, the SECs motion seeks to push the deadline to March 14. Coinbase has consented to this request and is demonstrating a cooperative stance.

This development follows Coinbase appealing a ruling by the district court issued on March 26, 2024, granting Coinbases partial motion for judgment on the pleadings, partially denying it. The district court certified Coinbases appeal pursuant to Section 1292(b) on January 7, 2025, so it could petition the Second Circuit Court of Appeals. The petition by the SEC invokes the need for time to consider recommendations by its just-formed crypto task force, an exercise that could significantly shape the case.

SECs Crypto Task Force Gains Spotlight

The SEC launched its crypto task force, known as Crypto 2.0, on January 21, 2025, by Acting Chairman Mark T. Uyeda. The unit has the duty of creating regulatory regimes for the evolving digital asset industry.

In its filing, the SEC indicated that the work by the task force had the potential both to affect the case it has brought against the exchange, as well as appellate scrutiny going forward. The agency views this as one step toward resolving the questions over crypto regulation.

The task force entry highlights the SECs strategic approach toward managing cases involving digital assets, showing an attempt to seal loopholes regarding regulatory transparency while settling cases of high-stake litigations like Coinbase.

Coinbase Stands Its Ground

For over 20 months, the exchange has been embroiled in legal conflict with the SEC. The crypto exchanges January 17, 2025, petition to appeal the district courts decision underscores its determination to challenge the SECs regulatory approach.

By consenting, Coinbase indicates it respects due process while still prioritizing implications across the industry. The collaborative move also deviates from the adversarial back-and-forth normally seen by crypto companies and regulators.

A Resolution in Sight?

The SECs extension, coupled with the addition of the task force, shows there could finally be a turning point in this long legal battle. The deadline of March 14 has the chance to be an inflection point both for the crypto community as well as the regulatory climate.

While it is unknown whether the extension will speed an outcome, the SECs change of course means it is finally prepared to address the complexities of crypto regulation. In the meantime, the court battle over Coinbase vs. the SEC continues, both sides, as well as the crypto community, playing for very high-stakes.

Text source: TronWeekly

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