SEC says crypto task force could help end Coinbase suit

One of the biggest Biden-era crypto enforcement actions may be on its way to resolution

article-image

Incoming crypto task force head Hester Peirce | Permissionless II for Blockworks

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


One of the biggest Biden-era crypto enforcement actions may be on its way to resolution. 

The SEC last week said its new crypto task force “may affect and could facilitate the potential resolution” of the agency’s lawsuit against crypto exchange Coinbase. 

The lawsuit, first filed in 2023, was escalated to the Second Circuit last month with Coinbase’s successful motion for an interlocutory appeal. 

Basically, the SDNY (the federal court that handled SBF’s trial and many other ongoing crypto matters) decided that a higher court needs to step in to resolve a key question: Do intermediated crypto transactions involve investment contracts (i.e., transactions made on an exchange)?

If the answer to this question is yes, then that means crypto exchanges are facilitating securities transactions, which would be a problem. 

On the one hand, a ruling from the Second Circuit on this question would bring a lot more clarity to the space. One of the biggest issues with crypto regulation and enforcement today is that district court judges, sometimes even from the same district, are taking different stances. 

An appeals court ruling would provide more concrete precedent for future cases. (The caveat here is the appeals process is long and expensive. And either party could keep appealing to higher courts should things not go their way.)

On the other hand, a definitive crypto policy stance from the SEC would be even better than legal precedent. “Better,” of course, is relative here. The agency could come up with something the industry opposes. 

So lots of potential outcomes here. We’ll have to wait and see how it all shakes out.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

Sponsored

With early interest from an initial cohort of brands including Metaplex, Story Protocol, and Pipe Network, Shelby offers decentralized, cloud-speed storage for streaming, AI, and real-time content

article-image

The $135 million raise shows that TradFi giants are serious about crypto adoption

article-image

The banking system still processes payments like it’s 1975. Crypto might have a fix.

article-image

Fiserv’s launch follows Senate passage of the GENIUS Act for stablecoin regulation.

article-image

Bitcoin is emerging as “the new standard for long-term corporate resilience,” Swan Bitcoin CIO says

article-image

Cybersecurity experts explain how the attack could have been prevented