The United States Securities and Exchange Commission (SEC) responded to Coinbase’s plea to provide clarity on crypto regulations. In a letter to the US Court, the regulator asked for more time to provide a proper response to the crypto exchange’s request.
The letter was submitted to the United States Court of Appeals at the Third Circuit. The SEC asked for another four months, or more than 120 days, to Coinbase’ request for adoption of new rules and regulations for crypto and provision for clarity on the regulations.
Earlier this month, on June 6, the US court ordered the financial regulator to provide its response, whether it would take time for a response or whether it would completely deny the prospect of rulemaking.
The SEC noted that there’s “no merit” to the request of Coinbase requesting a writ of mandamus. It added that no decision has been taken yet regarding the action that needs to be taken in response to the petition.
For the mandamus petition, the regulator even said to deny, but stated a timeline of “next 120 days” for recommendation on petition of Coinbase for rulemaking.
The chief legal officer of Coinbase, Paul Grewal, expressed his view on this recent development of the case. In a tweet, he noted that the agency is repeating the “fallacy” that they have not yet made a decision on “new crypto rules.”
1) they repeat the fallacy that they haven’t made any decision on new crypto rules; 2) they refuse to commit to any deadline despite the Court’s explicit order; 3) they instead “anticipate” making a “recommendation” in 120 days; and most importantly… 2/5
— paulgrewal.eth (@iampaulgrewal) June 13, 2023
Grewal stated the letter contains no clear statements or clarity from the existing chair of SEC, Gary Gensler, which could confirm if the regulator has any intent for creating new rules. Furthermore, despite the court’s order to commit to a deadline for clarification, the agency refrained from doing so.
Last year in July, Coinbase filed a rulemaking petition to the SEC. However, given the lack of a response from the regulator for so long, the crypto exchange decided to take legal action against it.
In April 2023, Coinbase filed a “narrow action in the US Circuit Court” requesting the court’s interference and making the regulator register its response.
However, it was reported that the crypto company went on to the Third Circuit of the U.S. Court of Appeals. It referred to Gary Gensler’s statement and noted that the regulator’s actions and words have clarified its plans regarding the crypto regulations.
On June 6, 2023, the US financial regulator SEC charged Coinbase for offering unregistered securities. The move was a significant one from the agency against one of the leading crypto exchanges along with one just hours ago against the biggest cryptocurrency exchange.
The ferocious move created a momentary tremble around the cryptocurrency market and resulted in many cryptocurrencies falling. Though the market started rebounding after several hours, those which were cited as securities by the SEC were unable to make significant moves and continued trading in the negative for a while.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/14/sec-responds-to-coinbase-needs-time-for-crypto-regulatory-clarity/