The Third Circuit Court has recently ruled in favor of retaining jurisdiction over the appeal of Coinbase, one of the leading cryptocurrency exchanges, against the perceived inaction of the U.S. Securities and Exchange Commission (SEC).
The court has also ordered the SEC to submit a report within the next four months. This event marks a significant milestone in the ongoing dispute between Coinbase and the regulatory body regarding the latter’s approach toward providing basic regulations for the cryptocurrency industry.
The Third Circuit Court’s Intervention
Coinbase’s legal team, led by Chief Legal Officer Paul Grewal, was successful in persuading the Third Circuit Court to continue its oversight of the ongoing legal tussle with the SEC. In what seems to be a move aimed at ensuring the accountability of the SEC, the court-mandated the regulatory body to deliver a comprehensive report within 120 days.
Grewal took to Twitter to express his gratitude towards the court, lauding the decision as an essential step towards holding the SEC accountable. Without mentioning specifics, He voiced his appreciation for the Third Circuit Court’s intervention, highlighting that this marks a significant step in addressing the SEC’s perceived opacity in dealing with the cryptocurrency industry.
The Significance of the Coinbase’s Petition
The legal wrangle in question revolves around Coinbase’s petition for a writ of mandamus, a type of legal order that would compel the SEC to act on the cryptocurrency company’s request for regulatory clarity.
Coinbase has publicly expressed frustration with what it perceives as the SEC’s unwillingness to keep the court updated on its decision-making process. The cryptocurrency firm asserts that the regulator exhibits a certain degree of discomfort when mandated to report on its proceedings. Further, Coinbase argues that the prolonged silence and extensive delays from the SEC, coupled with its enforcement actions, have started to place a substantial burden on the cryptocurrency sector as a whole.
Source: https://coinpedia.org/news/sec-approved-120-day-deadline-to-provide-report-in-coinbase-case/