On Friday, February 14th, the United States Securities and Exchange Commission requested a 28-day extension of its deadline to respond to Coinbase’s appeal. This latest move represents an interesting development in the protracted legal battle between the regulatory agency and the US’ largest crypto exchange.
Why SEC Asked For A Deadline Extension
In its latest filing, the SEC asked the court to extend its deadline to respond to crypto exchange Coinbase’s appeal from February 14 to March 14. Both parties have been at loggerheads on whether or not digital assets should be classified as securities.
On January 17, 2025, Coinbase submitted its petition for permission to appeal the court’s March 2024 opinion and order. However, the SEC motioned — and was granted — for a 14-day extension of time to respond to the crypto exchange’s petition.
The SEC claims that the reason for its latest extension request is the formation of its new crypto task force by the agency’s acting chairman, Mark Uyeda. The acting SEC Chairman Uyeda instituted the task force to help develop an adequate regulatory framework for digital assets.
Source: Courtlistener
According to the commission, the work of the Hester Peirce-led task force may impact its response to Coinbase’s appeal and potentially resolve the underlying classification issue.
The court document read:
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, conserving judicial resources. 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.
The SEC noted that neither party will be prejudiced by the approval of the deadline extension. The regulatory agency also highlighted in its filing that Coinbase consents to the extension request, as the exchange’s appeal is not expedited.
A Shift In The Crypto Regulatory Landscape?
Interestingly, this Coinbase trial is the second case within the same week where the SEC has asked for an extension. On Monday, February 11, the US financial regulator and the world’s largest exchange Binance jointly filed for a 60-day stay on their legal battle.
The SEC cited a similar reason — as in the Coinbase lawsuit — behind the request to pause the Binance case for the next 60 days. According to the court document, the parties intend to submit a joint status report at the end of the 60-day stay period, deciding whether an extension of the stay is necessary.
The total crypto market cap on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from Leadership News, chart from TradingView
