Coinbase vs SEC: Legal Case Paused as Crypto Task Force Reshapes Regulation

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Would the newly formed Crypto Task Force prompt the US Securities and Exchange Commission to make a radical shift in its approach towards cryptocurrency regulation? Recent developments in the SEC’s legal battles against prominent exchanges like Coinbase and Binance indicate that the regulator is slowing down legal action against crypto firms and waiting for its task force to guide future decisions.

SEC Requests a 28-Day Extension in the Coinbase Case

Last month, providing a brief relief to Coinbase in its legal battle against the SEC, Judge Failla halted the legal proceedings against the exchange. The court even allowed Coinbase to file an interlocutory appeal to seek clarity on whether existing securities laws apply to digital assets traded on the exchange.

An interlocutory appeal occurs when a ruling by a trial court is appealed while other aspects of the case are still proceeding. The SEC was supposed to respond to the exchange’s request to file the appeal on or before February 14, 2025.

Experts like Eleanor Terrett predicted that the regulatory agency might ask for an extension of the deadline.

As forecasted by experts, the SEC has requested a 28-day extension to respond to Coinbase’s appeal to leave to file an interlocutory appeal.

Unsurprisingly, Coinbase has accepted the extension request filed by the US SEC.

SEC and Binance Agree to Pause Legal Case

On February 10, 2025, Binance and the US SEC jointly filed an appeal to stay the regulator agency’s legal proceedings against the exchange for 60 days.

The petition pointed out the possibility of the new SEC Crypto Task Force to give a new direction to the regulatory’s crypto regulation approach.

At that time itself, experts like Eleanor forecasted that other crypto firms like Ripple, Coinbase and Kraken would come forward with appeals seeking extensions.

SEC Leadership Shift: What You Should Know

Hours before Trump’s inauguration, gary gensler information

gary gensler

Gary Gensler is a pioneer and the current chair of the U.S. Securities and Exchange Commission. He has extensive experience that spans Wall Street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. Gary S. Gensler was on born October 18, 1957, in Baltimore, Maryland.He graduated from Pikesville High School in 1975, where he was later given a Distinguished Alumnus award. He also earned a degree in economics.Gensler served in the United States Department of the Treasury as Assistant Secretary for Financial Markets from 1997 to 1999, then as Undersecretary for Domestic Finance from 1999 to 2001He has expressed his desire to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages.

Chairman

stepped down from its post as the SEC chairman. The untimely exit of Gensler paved the way for the entry of pro-crypto attorney Mark Uyeda as the acting SEC chair.

The SEC established a Crypto Task Force to provide clarity on the application of the federal securities laws to the crypto asset market.

The task force currently operates under the leadership of SEC Commissioner hester peirce information

hester peirce

Hester Peirce of the Securities and Exchange Commission, often known as "Crypto Mom," is one of the most outspoken supporters of cryptocurrency at the government level in the United States. Prior to joining the Securities and Exchange Commission, she worked in a variety of roles evaluating and formulating financial regulations, having graduated from Yale Law School. She worked at George Mason University's Mercatus Center, a libertarian think tank, most recently before becoming commissioner, where she produced, among other things, critiques of legislation like the Dodd-Frank Act.

She, often known as "Crypto Mom," is a member of the Securities and Exchange Commission. She was born in Ohio and graduated from Yale Law School. Prior to joining the Securities and Exchange Commission, she worked in a variety of capacities evaluating and creating financial regulations. She worked at George Mason University's Mercatus Center, a libertarian-leaning think tank, most recently before becoming commissioner, where she produced, among other things, critiques of legislation like the Dodd-Frank Act.

As chairman Jay Clayton steps out and a Joe Biden nominee takes his place, Republican Peirce will find herself in the minority. Clayton, on the other hand, was not particularly forward-thinking when it came to digital assets. President Biden has declared his intention to select Gary Gensler, a crypto expert who would presumably be more prepared to deal with Peirce than Clayton was.

The SEC's approval of initial public offerings for crypto businesses like Coinbase, the first U.S.-authorized Bitcoin ETF, and, of course, the ICO safe harbour are all obvious targets for Peirce. We won't know what Peirce thinks about the SEC's pursuit of Ripple until after the fact, per SEC protocol, but the outcome of that case will almost certainly serve as a springboard for more clarity.

Peirce told guests at the Crypto Finance Conference in January that the future SEC chairman's priority should be supporting innovation and giving regulatory clarity: "We need to embrace innovation and figure out how to create a regulatory framework that encourages it, which, in our field, I believe means providing clarity."