Coinbase Urges SEC for Crypto Regulation, Uses Kraken Case as Backing Evidence
Summary:
American cryptocurrency exchange platform, Coinbase, has intensified its demand for the Securities and Exchange Commission (SEC) to take action on creating cryptocurrency rules. The request refers to the SEC's recent enforcement actions against Kraken. The issue was escalated to the U.S. Court of Appeals for the Third Circuit, with Coinbase citing the protraction of the SEC's response. The legal action against Kraken provides evidence that the SEC is not invested in achieving regulatory clarity, according to Coinbase. This escalation comes amid anticipation that the SEC may be close to deciding on a spot Bitcoin exchange-traded fund listing on US markets.
In an aim to urge the Securities and Exchange Commission (SEC) to act, Coinbase, a leading cryptocurrency exchange located in the United States, reemphasizes its demand. The exchange, in its pursuit for new crypto rules, uses the regulator's recent action against Kraken as evidence in support of its requests. Coinbase's lawyers submitted a rebuttal to the SEC in a filing on the 22nd of November at the U.S. Court of Appeals for the Third Circuit, responding to a letter from the SEC dated 21st November announcing an intended status report by 15th December on the crypto rulemaking petition. The petition, which was submitted by Coinbase in July 2022, requested the SEC to "conceive and enact regulations overseeing securities distributed and traded using digital platforms," with later responses indicating delays.
The letter stated only a court order would prompt action by the SEC. The SEC's fear of a court ruling engendered some activity, but the proposed report shows continued resistance and procrastination, underscoring that mandamus (court order) is the only way to force the Commission to finally recognize that Coinbase's rulemaking petition was negated a while back.
Coinbase refers to the SEC's enforcement action filed against Kraken on Nov. 20th, alleging the crypto exchange's mingling of customer funds and failure to register as a securities exchange, broker, dealer, and clearing agency as backing evidence. However, the 21st November civil and criminal cases settlement against major crypto exchange Binance, an ongoing case with the SEC, was not included in the letter.
The filing stresses and argues that the SEC's lawsuit against Kraken, which must have been approved by the SEC itself, bolsters the argument that the Commission does not see the necessity for regulatory clarity.
Amid the growing anticipation that the SEC could be nearing a verdict on a Bitcoin spot exchange-traded fund listing on US markets, the demand for rulemaking persists. Such approval could potentially become one of the most defining positive developments towards mainstream crypto acceptance.
The report concludes with a highlight on the increasing pressure from US enforcement agencies towards crimes related to cryptocurrencies.
Published At
11/22/2023 4:11:02 PM
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