Coinbase vs SEC Case Paused: Will the New Crypto Task Force Change SEC’s Strategy?

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Could the newly formed Crypto Task Force push the U.S. Securities and Exchange Commission (SEC) to change its approach to cryptocurrency regulation? Recent developments suggest the SEC is stepping back from aggressive legal action against major crypto firms like Coinbase and Binance. But why now?

With ongoing lawsuits, leadership changes, and growing pressure for clearer rules, the SEC’s next steps could shape the future of crypto in the U.S.

Here’s what we know so far.

Coinbase Secures Temporary Relief

Last month, Coinbase gained some relief in its legal battle with the SEC when Judge Failla paused proceedings. The court also allowed Coinbase to file an interlocutory appeal to clarify whether existing securities laws apply to digital assets traded on the exchange.

An interlocutory appeal lets a party challenge part of a ruling while the rest of the case continues. The SEC was originally expected to respond to Coinbase’s appeal request by February 14, 2025.

Legal experts, including Fox Business journalist Eleanor Terrett, predicted that the SEC might ask for an extension. As expected, the agency has now formally requested an additional 28 days to respond to Coinbase’s appeal. Coinbase has accepted the request.

Binance Also Seeks a Legal Pause

On February 10, 2025, Binance and the SEC jointly filed a motion to pause legal proceedings against the exchange for 60 days. The filing suggested that the SEC’s new Crypto Task Force could play a key role in shaping future regulatory decisions.

Experts had also predicted that other crypto firms—such as Ripple, Coinbase, and Kraken—might request similar delays as they wait for clearer regulations.

SEC Leadership Shift: What You Should Know

Just hours before Donald Trump’s inauguration, SEC Chair gary gensler information gary gensler Gary Gensler is a pioneer and the current chair of the U.S. Securities and Exchange Commission. He has extensive experience that spans Wall Street, government regulation, and an angel teaching about cryptocurrencies and blockchain at MIT. Gary S. Gensler was on born October 18, 1957, in Baltimore, Maryland.He graduated from Pikesville High School in 1975, where he was later given a Distinguished Alumnus award. He also earned a degree in economics.Gensler served in the United States Department of the Treasury as Assistant Secretary for Financial Markets from 1997 to 1999, then as Undersecretary for Domestic Finance from 1999 to 2001He has expressed his desire to present crypto-related approach changes later on that include token commitments, decentralized finance, stablecoins, guardianship, exchange-traded resources, and advancing stages. Chairman stepped down, making way for pro-crypto attorney Mark Uyeda to take over as acting SEC chair.

To bring more clarity to how federal securities laws apply to crypto, the SEC recently created a Crypto Task Force. The group is led by SEC Commissioner hester peirce information hester peirce Hester Peirce of the Securities and Exchange Commission, often known as "Crypto Mom," is one of the most outspoken supporters of cryptocurrency at the government level in the United States. Prior to joining the Securities and Exchange Commission, she worked in a variety of roles evaluating and formulating financial regulations, having graduated from Yale Law School. She worked at George Mason University's Mercatus Center, a libertarian think tank, most recently before becoming commissioner, where she produced, among other things, critiques of legislation like the Dodd-Frank Act. She, often known as "Crypto Mom," is a member of the Securities and Exchange Commission. She was born in Ohio and graduated from Yale Law School. Prior to joining the Securities and Exchange Commission, she worked in a variety of capacities evaluating and creating financial regulations. She worked at George Mason University's Mercatus Center, a libertarian-leaning think tank, most recently before becoming commissioner, where she produced, among other things, critiques of legislation like the Dodd-Frank Act. As chairman Jay Clayton steps out and a Joe Biden nominee takes his place, Republican Peirce will find herself in the minority. Clayton, on the other hand, was not particularly forward-thinking when it came to digital assets. President Biden has declared his intention to select Gary Gensler, a crypto expert who would presumably be more prepared to deal with Peirce than Clayton was. The SEC's approval of initial public offerings for crypto businesses like Coinbase, the first U.S.-authorized Bitcoin ETF, and, of course, the ICO safe harbour are all obvious targets for Peirce. We won't know what Peirce thinks about the SEC's pursuit of Ripple until after the fact, per SEC protocol, but the outcome of that case will almost certainly serve as a springboard for more clarity. Peirce told guests at the Crypto Finance Conference in January that the future SEC chairman's priority should be supporting innovation and giving regulatory clarity: "We need to embrace innovation and figure out how to create a regulatory framework that encourages it, which, in our field, I believe means providing clarity." EntrepreneurInvestorFinanceCrypto and Blockchain Expert , who has long advocated for a fairer approach to crypto regulation.