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The US Securities and Exchange Commission (SEC) is seeking an extension in its case against Coinbase, hinting at a potential settlement.
On Friday, the agency submitted a request to ask a federal apepals court for a four-week extension to respojnde to Coinbase's ongoing appeal.
Coinbase had challenged a decision by District Judge Katherine Polk Failla, who found the SEC had presented a plausible case that Coinbase sold unregistered securities. The exchange is seeking judicial clarity on how securities laws apply to crypto.
In its request, the SEC pointed to Acting Chair Mark Uyeda’s crypto task force, led by Commissioner Hester Peirce, as a potential factor in resolving the case. Additional time would allow for internal review and discussions that could ultimately 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 said.
"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."
Last week, the SEC and Binance called for a 60-day pause in their ongoing legal battle. Similarly, the exchange and regulator said in a court filing that the new crypto tasks force could influence the litigation and “facilitate the potential resolution of this case.”
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“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,” said a Binance spokesperson.
“The SEC’s case has always been without merit and we are eager to put this behind us and to continue our focus on keeping Binance the most secure, licensed and trusted exchange in the world.”
Last month, US President Donald Trump appointed Uyeda as the acting chair. Before his appointment as an SEC commissioner in June 2022, Uyeda built a career in public service and securities regulation. He served on the Senate Banking Committee under former U.S. Senator Pat Toomey and provided strategic counsel to California’s securities regulator during Arnold Schwarzenegger’s governorship.
Former SEC Commissioner Paul Atkins was nominated by Trump in December to take on the role of the agency's permanent chair. Uyeda, the SEC's crypto task force, which Peirce heads up.
Coinbase has reported an impressive Q4, with revenue surging 130% to $2.27 billion and an even more bullish outlook.
In its Shareholder Letter, Coinbase reported net income of $1.3 billion, compared to $273 million in the same quarter last year. Transaction revenue also more than doubled to $1.56 billion while trading volume saw a 185% rise to $439 billion. Consumer trading volume rose 224% while institutional trading volume increased 176%.
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