Coinbase has accepted the U.S. Securities and Exchange Commission’s (SEC) request to extend the deadline for responding to its appeal, bringing the deadline forward from February 14 to March 14.
The move has fuelled speculation that the long-running legal battle between the two sides may be nearing a resolution.
The case, which dates back to June 2023, stems from SEC allegations that Coinbase offered unregistered securities and failed to meet its disclosure obligations. Coinbase has consistently maintained that transactions on its platform do not constitute securities and has sought legal clarity on whether secondary market transactions fall within the definition of investment contracts.
Judge Katherine Failla had previously granted Coinbase’s request for a temporary appeal, suspending all litigation proceedings until the Second Circuit Court of Appeals could consider the appeal. The latest extension, coupled with the SEC’s newly formed crypto working group led by Commissioner Hester Peirce, known for her pro-crypto stance, has intensified speculation that a resolution could be imminent.
The legal battle comes amid a period of strong financial performance for Coinbase. In its fourth-quarter earnings report released last Thursday, the company reported significant year-over-year increases in both revenue and profit. In addition, the Trump administration’s pro-crypto stance has fueled investor optimism and contributed to a post-election rally that has served as a bullish catalyst for the sector.
*This is not investment advice.
