SEC Requests 28-Day Extension in Response to Coinbase’s Appeal on Lawsuit

• The SEC requested a 28-day extension to respond to Coinbase’s appeal regarding unregistered securities.
• Coinbase’s Q4 report shows significant revenue growth, with a 179% increase in consumer transaction revenue.
• The SEC and Binance jointly sought a 60-day stay in their lawsuit, with a judge granting the extension.

The U.S. Securities and Exchange Commission (SEC) requested an additional 28 days before a federal appeals court to respond to Coinbase’s appeal that started after a district court decision. The decision by District Judge Katherine Polk Failla indicated that the SEC established sufficient grounds for their case against Coinbase regarding platform-linked unregistered securities transactions. 

The cryptocurrency platform Coinbase sought an instant appeal to obtain guidance regarding security law enforcement in regards to digital currencies. The SEC requested an extension of the original deadline from February 14 to March 14 in 2025 until the request gains final approval. 

The SEC plans to establish a crypto task force which gained approval from Commissioner Hester Peirce to determine the extension of deadlines. The agency specifically outlined that ongoing task force operations would influence both the appeal procedure and fundamental case proceedings which could lead to an efficient resolution while saving judicial resources during legal stages.

Coinbase’s Strong Financial Performance Amid Legal Challenges

In its latest quarterly report, Coinbase revealed impressive financial growth despite facing significant legal battles. During Q4 of 2024 the platform registered $2.27 billion in revenue while recording double the revenue from prior periods. The company generated $4.68 per share profit amounting to $1.29 billion during quarter four performance which exceeded expert predictions.

The platform experienced extensive revenue growth because retail investors reappeared on Coinbase during the market downturn. During this time frame Coinbase observed a surge in new users and a revived trading activity from previous inactive users suggesting heightened interest in digital assets. Coinbase demonstrates the cryptocurrency market’s ongoing strength and potential even as it faces ongoing legal challenges. 

SEC’s Strategy in Ongoing Lawsuits

An SEC request for an additional extension came after the same move was made in another high-profile case against Binance. In February, the SEC and Binance jointly requested a 60 day stay of a case involving Binance’s operations in the U.S. The regulator suggested that this additional time would mean that there is a resolution to the case. The SEC’s strategy to seek some additional time to possibly settle some important cases in the crypto space was demonstrated in the judge’s order, granting the stay.

The SEC is taking these actions as part of its broader effort to bring order to the fast-emerging cryptocurrency industry, which has been in the SEC’s gun sights for months. But the agency is still hammering out a regulatory framework for digital assets while also facing a slew of uncertain legal challenges. The legal proceedings continue, with Coinbase and the SEC waiting on a final resolution that provides more solid legal guidance for cryptocurrency exchanges.