In a surprising twist to the ongoing legal battle between Coinbase, the leading cryptocurrency exchange, and the United States Securities and Exchange Commission (SEC), the regulatory body has sought an additional four months to respond to Coinbase’s plea for regulatory clarity in the cryptocurrency space.
4) they ignore the clear statements of the Chair that confirm they have no intent to issue new rules, and instead conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision. 3/5
— paulgrewal.eth (@iampaulgrewal) June 13, 2023
This development comes on the heels of the U.S. Court of Appeals for the Third Circuit’s order for the SEC to address whether it is denying rulemaking or simply requiring more time to respond. The court’s directive has seemingly prompted the SEC to request an extended timeline.
In a letter dated June 13, the SEC cited a lack of decision-making on Coinbase’s request for new rules and further clarification on crypto-related laws as the reason for its need for more time. While the regulator dismissed Coinbase’s petition for a writ of mandamus as having “no merit” and should be denied, it did acknowledge its intention to provide a recommendation on Coinbase’s petition for rulemaking within the next 120 days.
Coinbase’s Chief Legal Officer, Paul Grewal, expressed his disappointment with the SEC’s response via Twitter. Grewal criticized the regulator for repeating the “fallacy” that it has yet to decide on any new regulations, despite clear statements from SEC Chair Gary Gensler affirming that there is no intent to issue new rules. He also highlighted the SEC’s refusal to commit to a deadline, disregarding the court’s explicit order.
This latest move by the SEC follows its recent legal action against Coinbase, where it sued the exchange for allegedly offering unregistered securities and operating an unregistered securities exchange. The lawsuit, combined with the SEC’s request for additional time, has escalated tensions between Coinbase and the regulatory body, further fueling the ongoing debate surrounding the need for clear regulations in the cryptocurrency industry.
As Coinbase anxiously awaits the SEC’s decision, the entire crypto community is watching closely to see how this battle will shape the future of digital asset regulation in the United States. The outcome of this case will undoubtedly have significant implications for the broader crypto market and its participants.
Compiled by Coinbold