YEREVAN (CoinChapter.com) — The U.S. Securities and Exchange Commission (SEC) has asked for an additional 28 days to respond to Coinbase’s appeal in an ongoing legal dispute. The SEC’s Feb. 14 filing states that its newly established crypto task force could play a role in resolving the 20-month case.
“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 SEC stated in its filing.
SEC Seeks 28-Day Extension in Coinbase Appeal. Source: U.S. Court of AppealsCoinbase and SEC Agree on New Deadline
Coinbase has agreed to extend the SEC’s response deadline from Feb. 14 to March 14. The request comes days after both the SEC and Binance asked a judge to pause their ongoing lawsuit for 60 days, citing the task force’s role in shaping a regulatory framework.
SEC and Binance Request 60-Day Case Pause. Source: U.S. District CourtOn Jan. 21, Coinbase filed an appeal, arguing that crypto transactions on its platform should not be considered securities. The company emphasized that the classification of secondary market crypto transactions is crucial for the crypto industry.
SEC Seeks Extension in Coinbase Appeal Case. Source: U.S. Court of AppealsSEC’s Crypto Task Force and Regulatory Uncertainty
The SEC’s newly formed crypto task force, led by Commissioner Hester Peirce, is expected to develop a digital asset framework. Peirce, known for her supportive stance on crypto regulations, has been a vocal advocate for clearer regulatory guidelines.
Commissioner Mark Uyeda, currently serving as acting SEC chairman, announced the creation of the task force in January. This move has raised industry expectations for progress in resolving long-standing lawsuits against crypto firms.
Legal Battle Between Coinbase and SEC Continues
The SEC sued Coinbase in June 2023, accusing the company of offering unregistered securities. The lawsuit claims Coinbase never registered as a broker, national securities exchange, or clearing agency, allegedly bypassing disclosure rules for securities markets.
On March 2024, Judge Katherine Failla allowed Coinbase to appeal an earlier decision that denied its motion for judgment. She also ordered all proceedings to pause until the Second Circuit Court rules on the interlocutory appeal.
Judge Issues Opinion in SEC vs. Coinbase Case. Source: U.S. District CourtAbove all, the SEC’s request for additional time signals ongoing discussions within the agency on how to handle crypto regulations. Moreover, while the task force works on a regulatory framework, market participants remain focused on the outcome of Coinbase’s appeal.
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