SEC Seeks 28-Day Delay in Coinbase Case Amid Crypto Policy Shift

The SEC has asked for a 28-day extension to respond to Coinbase's appeal, pushing the deadline to March 14, 2025.

The Securities and Exchange Commission (SEC) has requested a 28-day extension to respond to Coinbase’s appeal, pushing the deadline to March 14, 2025, according to a filing with the U.S. Court of Appeals for the Second Circuit on Feb. 14.

The legal batte between Coinbase and the SEC began in the U.S. District Court for the Southern District of New York over the regulator’s attempt to gather information on Coinbase users. On March 26, 2024, the court issued a mixed ruling, granting and denying Coinbase’s motion for judgment on the pleadings.

Coinbase filed its petition for appeal after the court certified its decision on Jan. 7, 2025 and filed its petition on Jan. 17. The SEC had already gotten a 14-day extension in January and now is asking for more time to review crypto-related issues.

“The Commission’s review of crypto-related issues is ongoing,” the SEC stated in the filing. “This additional time is needed to prepare our response to Coinbase’s petition and to facilitate internal review. No party will be prejudiced by the requested extension.”

Coinbase has consented to the delay but the request highlights the uncertainty surrounding crypto in the U.S., especially after a year of shifting priorities and leadership changes at the SEC.

Crypto Policy Undergoes Big Changes

The SEC’s request comes as the Trump administration makes significant changes to the agency’s leadership and priorities, especially in crypto regulation. After Gensler left the SEC on Jan. 20, 2025, President Donald Trump appointed Mark T. Uyeda as Acting SEC Chair.

In contrast to Gensler’s approach, Uyeda has taken a more measured approach to crypto regulation Throughout his career, he has emphasized the importance of clear and efficient regulations to foster innovation and economic growth.

One of Uyeda’s first moves was to establish a Crypto Task Force led by Commissioner Hester Peirce, one of the agency’s most vocal advocates for clearer and fairer crypto regulations. The task force will create a comprehensive framework that balances innovation with investor protection, a departure from the SEC’s previous regulation-by-enforcement approach.

Another significant development is that Jorge Tenreiro, who was a key player in the SEC’s lawsuits against crypto companies, has been reassigned from the enforcement division to the agency’s IT department. He’s been removed from high profile cases which suggests the SEC is shifting away from cracking down on crypto firms.

These changes are part of a broader effort by the Trump administration to make the U.S. a global leader in cryptocurrency and blockchain. In a recent executive order, President Trump directed federal agencies to evaluate digital assets and integrate them into the U.S. financial system.

What This Means for Coinbase and the Market

With the SEC asking for more time to review crypto-related issues in the Coinbase case, investors and crypto leaders are watching to see how the agency will handle the shift in stance on digital assets. Here are a few takeaways:

As the SEC adjusts to new leadership and perspectives, this case will be a turning point for crypto regulation in the U.S. The Second Circuit’s decision on Coinbase’s appeal will set an important precedent for future legal disputes between crypto companies and the SEC.

The shifting priorities within the SEC are likely to impact the agency’s approach to crypto regulation. While the previous administration focused on enforcement actions, the new leadership is emphasizing the creation of a clear regulatory framework for digital assets.

Investors are keeping a close eye on the SEC’s actions to gauge the level of support and integration that crypto can expect within the U.S. financial system. These developments will continue to shape the future of cryptocurrency in the United States.