U.S Court Grants 120 Days’ Time to SEC in Coinbase Lawsuit

• The U.S. SEC was ordered by the court to file a follow-up report no later than 120 days.
• The commission had requested more time in the last hearing.

On Tuesday, it was announced that the Third Circuit Court of Appeals will continue to hear the case brought by Coinbase and others to clarify Securities and Exchange Commission (SEC) restrictions on digital currencies. The petition for a Writ of Mandamus was noted in the ruling, and the commission was given the opportunity to respond.

The U.S. SEC was ordered by the court to file a follow-up report no later than 120 days from the date of the order, or October 11, 2023. After Coinbase submitted a request to the commission, the latter declined to respond and instead requested more time.

According to Coinbase’s Chief Legal Officer Paul Grewal, the US SEC is expected to release a report on foundational crypto laws within the next 120 days. He expressed appreciation that the court would continue to shed light on the SEC’s hitherto shadowy operations.

Moreover, he also said that the Circuit’s recent judgment should be commended for recognizing that the SEC is also answerable to the law.

No Further Delays

Some have seen this as positive for Coinbase in their pursuit of regulatory certainty in the cryptocurrency industry. The SEC has been directed by the Third Circuit to inform the court of its decision on the petition.

The Commission has until the extended deadline to issue a clear report, at which point a verdict might go in Coinbase’s favor.

A favorable verdict for Coinbase might occur, though, if the Commission announces that it hasn’t chosen to take any action within the extra time provided. In such a case, the commission will have to respond with a simple “yes” or “no” before the court as it may issue the writ of mandamus.

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