Key Takeaways:
- US Securities and Exchange Commission has responded to Coinbase’s application.
- Last week, a circuit court in the United States had given it a 7-day deadline to respond.
- Coinbase had petitioned the SEC to issue guidance and clarification on various aspects of digital assets
YEREVAN (CoinChapter.com) — The United States Securities and Exchange Commission (SEC) has responded to cryptocurrency exchange Coinbase’s plea for regulatory clarity regarding cryptocurrencies.
The SEC has asked the court to give it more time, claiming that it cannot decide quickly without assessing the matter thoroughly.
In July 2022, Coinbase submitted a formal request to the SEC, seeking guidance and clarification on various aspects of digital assets. It was yet another attempt by the exchange to advocate for increased regulatory certainty in the crypto space.
When the SEC remained unresponsive to Coinbase’s request, the exchange decided to take the matter to court. In April 2023, it sued SEC, hoping to obtain a resolution to its rulemaking petition.
Meanwhile, the SEC responded by requesting the court deny Coinbase’s request. However, before the court could rule on the matter, the SEC sued Coinbase.
On June 7, 2023, the US Circuit Court granted the SEC a seven-day deadline to respond to Coinbase’s petition. It also posed a series of questions, asking for clarification from the watchdog.
However, in its latest response, the SEC requested the court dismiss Coinbase’s writ petition as “baseless.” The watchdog further asked for time until October 11., 2023, to provide the court with a status report.
“Undersigned counsel responds to the Court’s order by stating that, given current circumstances, Commission staff anticipate being able to make a recommendation to the Commission regarding Coinbase’s rulemaking petition within the next 120 days,”
the SEC said in the letter in response to the Court’s June 6, 2023 order.
Also Read: Is Cathie Wood Double Betting On Coinbase Even As It Faces Legal Trouble?
Coinbase slams the SEC’s response as a “fallacy”
Coinbase chief legal officer Paul Grewal Tweeted the entire text of the SEC response to the writ petition.
Calling the responses a “fallacy,” Grewal accused the Securities and Exchange Commission of ignoring the court.
“They [SEC] refuse to commit to any deadline despite the Court’s explicit order,”
Grewal alleged.
He further claimed that the agency has no intention of issuing new rules. They are instead using tactics to dodge the order.
While the Securities and Exchange Commission is busy suing crypto exchanges, they fail to do their job. Without clarity, there is no way the industry can thrive in a regulatory environment.
Meanwhile, in what comes as exciting news for the cryptocurrency industry, lawmakers in the US House of Representatives have moved to sack Gary Gensler as the Chair of the SEC.
