Potential Settlement on the Horizon Between SEC and Coinbase
In a recent court filing late Friday, attorneys representing the U.S. Securities and Exchange Commission (SEC) indicated a possible settlement with cryptocurrency exchange Coinbase. This development comes in light of the SEC’s newly established crypto task force, aimed at addressing regulatory challenges in the rapidly evolving digital asset landscape.
The SEC has requested an extension from a federal appeals court regarding its deadline to respond to Coinbase’s appeal. This appeal stems from a ruling made by District Judge Katherine Polk Failla last month, which determined that the SEC had presented a credible case alleging that Coinbase had engaged in the sale of unregistered securities through its trading platform. In its appeal, Coinbase seeks clarity on how existing securities laws might apply to cryptocurrencies.
As part of its filing on Friday, the SEC sought a four-week extension to its response deadline, which is currently set for February 14. The request was grounded in the work of Acting SEC Chair Mark Uyeda’s newly instituted crypto task force, which is led by Commissioner Hester Peirce. The filing stated, “The crypto task force’s work may impact and could assist in facilitating a potential resolution of both the underlying district court proceeding and any subsequent appellate review, thereby conserving judicial resources.”
The SEC emphasized that its ongoing review of cryptocurrency-related issues warrants this additional time to adequately prepare its response to Coinbase’s petition and ensure a thorough review of the implications at hand.
This request marks the second time the SEC has sought an extension in a legal matter related to cryptocurrency. Earlier this week, the SEC, alongside Binance, filed a motion for a 60-day stay in the ongoing case against that exchange and its affiliated parties. Both parties believe that this extension could similarly lead to a resolution. The presiding judge in the Binance case has granted the requested stay, reflecting the evolving dynamics of regulatory oversight in the crypto sector.
