Coinbase fate in SEC lawsuit to be decided soon
Coinbase fate in lawsuit to be decided soon
A pivotal moment is approaching in the ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC).
By February 14, the SEC is expected to decide whether it will oppose Coinbase’s request to appeal a key ruling in the case, a decision that could have lasting implications for cryptocurrency regulation, according to the Cryptopolitan.
The lawsuit, which centers on whether digital assets traded on Coinbase qualify as securities, has been closely watched by the crypto industry and legal experts.
Judge Katherine Polk Failla had previously allowed Coinbase to appeal, bringing the case before the Second Circuit Court. Now, the SEC must determine whether to challenge the appeal, request an extension, or drop the case altogether.
A Shift in Regulatory Approach?
The SEC’s actions in recent weeks have fueled speculation about a potential shift in its regulatory stance. The agency recently agreed to pause its case against Binance for 60 days, citing ongoing discussions within a specialized crypto task force.
If the SEC takes a similar approach with Coinbase, it could signal a willingness to reconsider its aggressive enforcement strategy against digital asset platforms.
The leadership transition at the SEC, with acting Chair Mark Uyeda replacing Gary Gensler, has also introduced new uncertainties. Uyeda and Commissioner Hester Peirce have both acknowledged the legal ambiguity surrounding cryptocurrencies, raising questions about whether the agency will soften its position.
A decision against Coinbase’s appeal would indicate that the SEC remains committed to enforcing existing securities laws on crypto firms. However, if the agency refrains from opposing the appeal, it could open the door for a broader legal reassessment of how digital assets are regulated in the U.S.
Meanwhile, according to a forecast by Bitwise, Coinbase’s stock is expected to surpass $700 per share by 2025, potentially making it the world’s most valuable brokerage, overtaking Charles Schwab. With shares currently trading above $302, the price would need to more than double to reach that target.
