SEC Seeks Extension in Coinbase Case Amid Potential Settlement Talks

The U.S. Securities and Exchange Commission (SEC) has requested a four-week extension in its ongoing case against Coinbase, suggesting that a settlement may be on the table.

In a court filing, the SEC petitioned a federal appeals court for additional time to respond to Coinbase’s appeal. The cryptocurrency exchange is contesting a prior ruling that found the SEC had a plausible argument that Coinbase engaged in the sale of unregistered securities. In response, Coinbase is pushing for greater clarity regarding the application of securities laws to crypto.

The SEC pointed to its internal crypto task force, led by Commissioner Hester Peirce under Acting Chair Mark Uyeda, as a crucial element in resolving the case. The agency argued that granting an extension would facilitate internal discussions that could lead to a resolution.

“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,” the filing 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.”

This move comes just a week after the SEC made a similar request in its case against Binance, seeking a 60-day pause. In that filing, the agency and Binance suggested that the crypto task force’s work could influence the case’s outcome and potentially lead to a resolution.

A Binance spokesperson welcomed the development, stating, “We are grateful to Interim Chairman Uyeda for his thoughtful approach to ensuring digital assets receive the appropriate legislative and regulatory focus in this new, golden era of blockchain.”

“The SEC’s case has always been without merit. Therefore, we are eager to put this behind us and continue our focus on keeping Binance the most secure, licensed, and trusted exchange in the world.”

Uyeda, who was appointed acting SEC chair last month by former President Donald Trump, has since emphasized the importance of crypto regulation. Prior to his appointment, Uyeda served on the Senate Banking Committee and advised California’s securities regulator.

Meanwhile, former SEC Commissioner Paul Atkins has been nominated as the permanent chair.

By fLEXI tEAM