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Coinbase is in a unique legal position compared to other crypto companies embroiled in litigation with the SEC 🇺🇸 . Last month, Judge Failla put the case on hold, allowing Coinbase to file an appeal to determine whether existing securities laws apply to digital assets traded on its platform.

The SEC is due to respond to Coinbase’s appeal request this Friday (February 14). The agency has four options:

1. The objection shows that the SEC under Acting Chairman Mark Uyeda maintains Gensler's view that securities laws clearly apply to most crypto tokens.
2. No objection to appeal, suggesting SEC may be willing to address legal ambiguity around crypto regulation.
3. Request for extension of time, delay of decision.
4. Drop the case, do not pursue further.

The SEC’s response this time around will say a lot about how the agency plans to handle ongoing securities law litigation in the crypto space.