- The SEC’s extension request hints at a softer crypto stance, possibly leading to the withdrawal of its Coinbase lawsuit.
- Coinbase plans an India comeback, engaging with regulators for a late 2025 relaunch despite past compliance struggles.
- India’s crypto scene evolves as Binance pays fines, but a steep 30% tax still dampens investor enthusiasm.
According to CryptoBusy on X, The U.S. Securities and Exchange Commission (SEC) may withdraw its lawsuit against Coinbase, signaling a potential shift in its crypto regulatory stance. The SEC recently requested a 28-day extension to respond to Coinbase’s appeal petition.
Approval will lead to an extension of the deadline to March 14, 2025. Notably, the regulatory body emphasized that no party would face any disadvantage due to the extension. This move could indicate a more flexible regulatory framework for digital assets.
SEC’s Strategic Move and Implications
Coinbase’s legal battle against the SEC commenced at the U.S. District Court for the Southern District of New York. The move for judgment on the pleadings made by Coinbase was partially granted and denied by the court in March 2024.
The court later certified the ruling for appeal in January 2025. On January 17, 2025, Coinbase subsequently submitted its appeal petition. The SEC is now requesting further time for more review after first receiving a 14-day extension on January 23, 2025.
Besides, the SEC’s ongoing crypto-related discussions have led to the formation of a dedicated task force. Acting Chairman Mark T. Uyeda launched this initiative to refine the agency’s regulatory framework.
Consequently, the SEC argues that the additional time will allow for a more comprehensive response to Coinbase’s petition. This approach could also shape future crypto regulations and appellate proceedings.
Reentering the Indian market is something Coinbase intends to do. With the help of the United Payments Interface system, the business began operations in India in 2022. However, it was compelled to remove this feature within three days due to regulatory concerns. Due to continuous compliance issues, Coinbase had shut down all of its operations in India by 2023.
Coinbase’s Return to India Amid Regulatory Changes
Coinbase is planning to reenter India with help from local partners. Executives will be visiting the country in March 2025 for talks with the Financial Intelligence Unit (FIU). Coinbase could relaunch its platform by late 2025 after obtaining the required regulatory approvals and positioning itself alongside local crypto players CoinDCX and CoinSwitch.
Additionally, India’s attitude concerning cryptocurrency is changing. In June 2024, the FIU penalized nine offshore exchanges including Binance for anti-money laundering violations. Binance seemed to comply and resume operations after paying a $2.25 million fine. Yet, the heavy 30% crypto transaction tax imposed by India remains a hindrance for investors and traders.
