Is Coinbase Vs SEC Lawsuit Ending? US SEC Seeks 28-Day Extension

Coinbase Vs SEC Lawsuit: The U.S. Securities and Exchange Commission (SEC) has requested a 28-day extension in its legal case against Coinbase. The request was made in a court filing on Friday, where the SEC mentioned that its newly formed crypto task force could help resolve the case.

This move has raised speculation about a possible settlement between the regulator and the cryptocurrency exchange.

US SEC Seeks 28-Day Delay in Coinbase Lawsuit

The agency’s request for a four week extension in the Coinbase Vs SEC lawsuit was filed in a federal appeals court, where the crypto exchange had earlier appealed a district court ruling.

Judge Katherine Polk Failla previously ruled that the SEC had a valid case against Coinbase for allegedly offering unregistered securities. Coinbase then sought the appeals court’s opinion on how securities laws apply to digital assets.

The SEC stated that the crypto task force, led by Acting Chair Mark Uyeda and Commissioner Hester Peirce, could influence the case’s outcome.

“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 SEC said in its filing.

The commission asked for additional time to prepare its response to Coinbase’s appeal.

Ongoing Crypto Cases and Possible Settlements

The Coinbase Vs SEC Lawsuit request for delay is the second case where the SEC has requested an extension within the same week.

Earlier, the regulator and Binance jointly requested a 60-day stay in their case, stating that it could help in reaching a resolution. The judge in the Binance case approved the request.

The SEC’s latest move has led to discussions about whether the agency is reconsidering its approach to cryptocurrency regulation. The legal battle with Coinbase is one of the most high-profile cases in the crypto industry, and any potential settlement could set a precedent for how digital asset platforms operate under U.S. securities laws.

ETF Store President Breaks Silence on SEC’s Move

Following the SEC’s filing, some industry leaders expressed optimism about the possibility of a resolution. Nate Geraci, president of the ETF Store, wrote on X that “crypto regulation by enforcement is officially dead.” He also stated that the SEC is “laying the groundwork” to end the lawsuit, calling it “huge news.”

The crypto regulation by enforcement is associated with the previous US SEC chair Gary Gensler, however under acting chair Mark Uyeda, pro crypto stances have been on the rise including staking integration into crypto ETPs.

Concurrently, Ripple CEO Brad Garlinghouse met with lawmakers on Friday to discuss cryptocurrency regulations. After the meeting, he shared a positive outlook on future regulatory policies. He suggested that bipartisan support could lead to clear guidelines for the industry which may lead to a settlement in the Ripple vs SEC lawsuit.