SEC Seeks Extension to Respond to Coinbase’s Appeal Petition

In a motion, the U.S. Securities and Exchange Commission (SEC) asks for an additional 28 days to reply to Coinbase’s appeal request. The request, which was filed with the U.S. Court of Appeals for the Second Circuit on February 14, 2025, seeks to extend the SEC’s response date to March 14, 2025. According to the filing, Coinbase has agreed to the extension, emphasizing that “This is not an expedited appeal, and Coinbase consents to this motion.”

The legal battle between the SEC and Coinbase originates from a case in 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 case was later certified for appeal in January 2025, prompting Coinbase to file its petition on January 17, 2025. The SEC had already received a 14-day extension on January 23, 2025, but now seeks additional time to finalize its response amid ongoing regulatory considerations regarding the cryptocurrency sector.

Regulatory Overhaul and New Task Force

The SEC cited its ongoing review of crypto-related issues as the primary reason for requesting extra time. In its motion, the Commission 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.” The agency believes the extension will allow for a more thorough response and support the resolution of the district court case, as well as future appellate proceedings.

The establishment of a new crypto task force headed by Acting Chairman Mark T. Uyeda was one of the latest moves the SEC highlighted. In order to give the industry clarity and support, the task group is concentrating on creating a regulatory framework for cryptocurrency assets. The leadership of Commissioner Hester Peirce, who has long pushed for transparent and encouraging policies for cryptocurrencies, is indicative of this change towards a more crypto-friendly position. A possible de-escalation of enforcement operations against cryptocurrency firms is also indicated by changes inside the SEC, such as the reassignment of head litigator Jorge Tenreiro.