Coinbase Vs SEC: Court Retains Jurisdiction, Shedding Light on SEC's Inaction

Paul Grewal, Chief Legal Officer (CLO) of Coinbase, took to Twitter to share a significant development: the Third Circuit has ruled to retain jurisdiction over Coinbase’s challenge to the SEC’s inaction on their petition for basic rules for the cryptocurrency industry. This ruling marks a crucial step forward for Coinbase in its quest for regulatory clarity.

Shedding Light on the SEC Process

Coinbase’s petition, seeking a writ of Mandamus against the SEC, has sparked a response from the court. In response to the SEC’s submission on June 13, 2023, indicating that the staff expects to present their final recommendation to the commission within 120 days, the court has chosen to maintain jurisdiction over the case.

However, the court has not made a ruling on Coinbase’s petition for a writ of Mandamus at this time. The SEC is now required to provide an update on their progress by October 11, 2023.

The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC’s inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that… pic.twitter.com/wQu52UuCoU
— paulgrewal.eth (@iampaulgrewal) June 20, 2023

A Rollercoaster Ride of Progress

Davie Schwartz, Chief Technology Officer (CTO) at Ripple, expressed a mix of emotions regarding the court’s ruling. Schwartz described the court’s insistence on the SEC disclosing the timing of their ruling on Coinbase’s request as a victory.

However, Schwartz also expressed disappointment in the four-month delay allowed for the SEC to provide a mere update on their progress towards a staff recommendation. Nonetheless, the fact that Coinbase achieved any relief in this legal battle is seen as a positive outcome and a potential reflection of a shared frustration with the SEC among federal judges.

To be fair, I think everyone was expecting Coinbase to get nothing at all out of this. Frankly, I considered it a publicity stunt at first. So in that light, this is a victory.
— David “JoelKatz” Schwartz (@JoelKatz) June 20, 2023

A Victory for Coinbase and the Crypto Community

Bill Morgan, a prominent lawyer, and digital asset enthusiast, joined the discussion, emphasizing that the court’s ruling is undoubtedly a victory for Coinbase. He pointed out that the SEC’s previous ease in achieving wins in crypto-related legal proceedings seems to be slipping away.

This court ruling showcases Coinbase’s determination and success in challenging the SEC’s inaction, sending a message that the cryptocurrency industry will not back down in its pursuit of regulatory clarity.

Market participants and enthusiasts alike eagerly await further developments, hoping for a more transparent and well-defined regulatory framework that fosters innovation while ensuring investor protection.

Source: https://coinpedia.org/news/coinbase-vs-sec-court-retains-jurisdiction-shedding-light-on-secs-inaction/