The US Securities and Exchange Commission (SEC) is seeking a delay in the Coinbase lawsuit proceedings as it negotiates with the cryptocurrency exchange amidst its new crypto task force’s efforts to resolve the case.
The U.S. Securities and Exchange Commission (SEC) has filed a motion with a federal appeals court to extend its deadline for responding to Coinbase’s appeal of a recent ruling. The SEC cited the potential impact of its new crypto task force on the case.
Coinbase is a San Francisco-based cryptocurrency exchange founded in 2012 by Brian Armstrong and Fred Ehrsam.
It allows users to buy, sell, and store cryptocurrencies such as 'Bitcoin,' 'Ethereum,' and 'Litecoin.'
The platform offers a user-friendly interface, secure storage options, and competitive fees.
Coinbase has expanded its services to include Coinbase Pro, a professional trading platform for experienced investors.
As of 2022, the exchange has over 73 million users worldwide.
Background on the Case
In a previous ruling, District Judge Katherine Polk Failla determined that the SEC had presented a plausible case against Coinbase, alleging that the exchange sold unregistered securities on its platform. ‘The Court finds that the SEC has adequately pleaded a claim for relief.’ Coinbase subsequently appealed this decision to a federal appeals court, asking for clarification on how securities laws apply to cryptocurrency.
SEC’s Request for Deadline Extension
The SEC has requested a four-week extension of its deadline to file a response to Coinbase’s appeal, citing the potential impact of its new crypto task force on the case. The agency stated that the work of this task force may facilitate a resolution and conserve judicial resources.
Crypto Task Force’s Role
Acting SEC Chair Mark Uyeda’s new crypto task force, led by Commissioner Hester Peirce, is focused on reviewing and addressing crypto-related issues. The SEC believes that the task force’s work may impact the underlying district court proceeding and potential appellate review.
SEC’s Second Request for Extension
This is not the first time the SEC has requested an extension in a recent case. Earlier this week, the SEC and Binance filed for a 60-day stay in their ongoing case against Binance and affiliated parties, citing similar prospects of resolution through the crypto task force’s work.
The judge overseeing the Binance case granted the stay, and now the SEC is seeking a four-week extension in its Coinbase case. The agency believes that additional time will allow it to prepare an effective response and facilitate a potential resolution.
