SEC's Coinbase Case Extension: A Turning Point in Crypto Regulation

The US Securities and Exchange Commission (SEC) has extended the deadline for its response to Coinbase's appeal, sparking speculation that the regulator may be seeking a resolution in the ongoing case. John Reed Stark, a former SEC official, has suggested that this extension could be a turning point in the SEC's lawsuit against Coinbase.

In a recent post on the X social media platform, Stark explained that the SEC's request for a 28-day extension to answer Coinbase's petition for permission to appeal indicates that the regulator is still reviewing crypto-related issues. The extension will allow the SEC to conduct an "appropriate review" as it prepares its response to the Coinbase petition, according to Stark.

Stark believes that the SEC's case against Coinbase may be nearing its end, stating, "Stick a fork in the SEC’s case against Coinbase, it’s done." He also suggested that a similar outcome could await the SEC's cases against other crypto exchanges, such as Binance and Ripple.

The SEC sued Coinbase in June 2023, alleging that the company was operating an unregistered broker and exchange. Coinbase has maintained that crypto trades should not be considered securities. In Stark's estimation, the SEC's Crypto Task Force, established under President Donald Trump, may impact and facilitate the potential resolution of these cases.

The SEC's Crypto Task Force, led by pro-crypto commissioner Hester Peirce, has been meeting with industry participants to address regulatory concerns. The Blockchain Association, an industry group with nearly 100 members, has called on regulators to review and correct erroneous interpretations of law made by the SEC's previous administration.

The task force has met with representatives from various organizations, including Nasdaq, Andreessen Horowitz, Multicoin Capital, Jito Labs, and Sullivan & Cromwell, to discuss regulatory priorities and guidelines for exchange-traded products, broker-dealers, and protocol staking.