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 (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

Big blockers wasted a bitcoin fortune trying to prove a point

article-image

Coinbase’s newest acquisition includes the CEO and Head of Research from Opyn

article-image

Crypto’s highest purpose might be to make markets better by making them bigger

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy