The SEC seeks a 28-day extension to respond to Coinbase’s appeal, citing ongoing crypto regulatory reviews. With a leadership shift under Trump, the agency’s stance on crypto is evolving.
SEC Seeks More Time in Coinbase Battle as Crypto Rules Shift
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SEC Requests Extension in Coinbase Appeal
The U.S. Securities and Exchange Commission (SEC) filed a motion on Feb. 14, requesting a 28-day extension to respond to Coinbase Inc.’s petition for permission to appeal. If granted, the deadline would move to March 14, 2025. The filing, submitted to the U.S. Court of Appeals for the Second Circuit, comes as the SEC continues to assess regulatory issues surrounding cryptocurrency. The SEC emphasized in the filing: “This is not an expedited appeal, and Coinbase consents to this motion.”
The legal dispute between Coinbase and the SEC originates from a case in the U.S. District Court for the Southern District of New York. On March 26, 2024, the court partially granted and partially denied Coinbase’s motion for judgment on the pleadings. The court later certified the decision for appeal on Jan. 7, 2025, leading Coinbase to file its petition on Jan. 17, 2025. The SEC had already received a 14-day extension on Jan. 23, 2025, but now seeks additional time to prepare its response due to ongoing regulatory considerations.
The agency’s motion stated:
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. No party will be prejudiced by the grant of the requested extension.
The SEC also highlighted its new crypto task force, recently launched by Acting Chairman Mark T. Uyeda, which is focused on developing the agency’s regulatory framework for crypto assets. The Commission argues that the extension will enable it to formulate a more informed response while aiding in the resolution of the district court case and future appellate proceedings. With Coinbase’s consent, the SEC maintains that the additional time will not impact the case’s overall progress.
Following Gary Gensler’s departure as SEC Chair on Jan. 20, the securities regulator has undergone significant changes under President Donald Trump’s administration. Uyeda has initiated a shift towards a more crypto-friendly regulatory environment, exemplified by the formation of a Crypto Task Force led by Commissioner Hester Peirce, known for her advocacy of clear and supportive crypto regulations. This task force aims to establish a comprehensive framework that fosters innovation while ensuring investor protection. In a notable personnel change, Jorge Tenreiro, previously the SEC’s lead litigator in major cryptocurrency cases, has reportedly been reassigned to the agency’s IT department, signaling a potential de-escalation of aggressive enforcement actions against crypto entities. These developments reflect the administration’s commitment to repositioning the U.S. as a global hub for cryptocurrency and blockchain technology.
