VanEck’s Head of Digital Assets Research, Matthew Sigel, recently shared a Citigroup report predicting that Coinbase’s ongoing legal dispute with the Securities and Exchange Commission (SEC) could be “wholly or partially rescinded.” In response, FOX Business reporter Eleanor Terrett highlighted that the SEC faces a deadline today to reply to Coinbase’s request for an interlocutory appeal.
Coinbase SEC Lawsuit to End Soon?
This speculation follows a recent development in the SEC’s case against Binance. The regulator and the exchange jointly requested a 60-day pause, citing the SEC’s internal restructuring, including the establishment of a Crypto Task Force under Commissioner Hester Peirce. The request, filed in court, suggests that the task force’s role could “impact and facilitate the potential resolution of this case.”
The Binance development has sparked speculation about similar pauses or resolutions in other cases, including those involving Coinbase, Ripple, and Kraken. According to FOX Business journalist Elizabeth Terrett, this is the first instance of crypto litigation being put on hold since Mark Uyeda took over as the SEC’s acting chair on January 10. She noted that the request to pause Binance’s case might indicate broader shifts in how the regulator approaches non-fraud crypto cases.
We should get a better idea of where @coinbase stands with this today as it’s the @SECGov’s deadline to respond to the company’s request for interlocutory appeal. https://t.co/HXOYL8gB3Q
— Eleanor Terrett (@EleanorTerrett) February 14, 2025
However, Terrett pointed out that Coinbase’s case differs from the others. “Coinbase is in a unique situation,” she said, referring to the company’s ongoing appeal process. The exchange had previously sought clarity on whether crypto transactions should be classified as securities, leading to a federal court’s rare decision to allow an interlocutory appeal last month.
A Brief Look At Arguments Made Earlier
In its legal battle, the SEC accused Coinbase of functioning as an unregistered broker-dealer and facilitating unregistered securities sales through its staking services. On January 7, Judge Katherine Failla granted the exchange’s appeal request, citing inconsistent rulings in previous crypto-related cases. Coinbase formally petitioned the Second Circuit Court of Appeals on January 21, urging it to clarify the application of securities laws to digital assets.
The exchange’s petition argued that determining whether crypto trades qualify as securities is an urgent matter, emphasizing that “millions of users, companies, and regulators badly need clarity.” Coinbase further stated that “there is no more pressing issue in securities law than the scope of the SEC’s authority to regulate secondary trades of digital assets.”
With the SEC’s deadline to respond falling on February 14, the industry is closely monitoring the agency’s next move. Terrett outlined possible scenarios, suggesting that the SEC might oppose Coinbase’s request, signaling continued efforts to regulate most crypto assets under existing securities laws. Conversely, it could opt not to oppose, indicating a willingness to resolve the broader regulatory debate through the appeals process.
Another possibility is that the SEC requests an extension, delaying its response. The final option, though less likely, is for the regulator to drop the case entirely. According to Terrett, the SEC’s decision on Coinbase “will reveal a lot in terms of how the agency plans to handle ongoing litigation of cases disputing securities law.”
Also Read: Chamber of Digital Commerce Accuses SEC of Crypto Regulatory Overreach
