Coinbase Seeks Court Intervention for Clarification on Crypto Regulations from SEC
Summary:
Coinbase is pressuring a court to force the U.S. Securities and Exchange Commission (SEC) to respond to its request for clearer crypto regulations. This comes after the SEC's ambiguous update on the case, leading Coinbase's Chief Legal Officer, Paul Grewal, to demand a mandate that will compel the SEC to clarify its stance. Coinbase had initially proposed a rulemaking petition in July 2022, calling for the SEC to define rules for the crypto market. The SEC has since prolonged the process of delivering a definitive response.
Proving its determination, Coinbase is pressuring a court to issue a directive that would force the U.S. Securities and Exchange Commission to respond to the company's request for clearer crypto regulations. The company is seeking a mandate, issued within a month's time, urging the SEC to explicitly approve or reject its petition. The SEC, on October 12, shared an ambiguous status update, revealing little more than the fact that the Commission's staff had made a recommendation regarding Coinbase's petition. Paul Grewal, Coinbase's Chief Legal Officer, expressed his frustration over the SEC's slow progress in an October 13 post, insisting on a mandate to push the SEC to clarify its stance.
In an update to the Third Circuit Court of Appeals, Grewal also posted Coinbase's reaction to the SEC's update. He asserted the SEC's inconclusive report is bureaucratic evasion, and affirmed only a mandate will encourage them to dutifully react. The response concludes that it took over a year and a court order to elicit a staff-level recommendation and claims the Commission is avoiding the rulemaking process proposed by Coinbase, employing every bureaucratic tool to delay judicial review as long as the Court permits.
Coinbase originally put forth the rulemaking petition in July 2022, urging the SEC to set up and implement rules tailored to govern the crypto market, including precise rules dictating which digital currencies fall under the classification of securities. Nine months later, with no response from the SEC, Coinbase filed a petition for a mandate, urging the court to force the SEC to deliver a definitive approval or rejection.
As a counterpoint, the SEC has frequently declined the need to fulfill Coinbase's demands and asked the court to reject Coinbase's mandate petition. In June, the SEC requested 120 additional days to respond to the rulemaking petition, implying a possible response by October end or early November.
Published At
10/14/2023 5:37:24 AM
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