- In a writ of mandamus, Coinbaseย Cryptoย exchange has accused the SEC of not acting towards creating cryptocurrency rules.
- Coinbaseย Cryptoย exchange is looking for the courts to order the SEC to change its stance.
- The SEC maintains that there are already regulations for cryptocurrency โ they fall under securities law.ย
The battle betwixt the SEC and the cryptocurrency industry in the Unitedย States is starting to peak, with Coinbaseย Cryptoย exchange emerging as the champion for those influenced by regulatoryย authorities. In a new court filing, the major exchange made damaging accusations against the SEC.ย
Coinbaseย Cryptoย exchange has repeatedly sought clarity on the SECโs mandate to create a framework for cryptocurrency regulation. Nonetheless, in the latest filing to the Third Circuit of the Unitedย States Court of Appeals, the exchange has condemned the agency as โthe SEC Chair persistsย to state publicly that there will be no rulemaking.โ
Airing Out the Laundry
The filing falls as a writ of mandamus โ a judicial remedy from a court to any Government authority to do some specific act โ as Coinbaseย Cryptoย exchange continuesย seeking an answer for its โpetition for rulemaking,โ filed last July. This petition requested the agency to propose and adopt digital investment securities rules.
Coinbaseย Cryptoย exchange feels the writ of mandamus is warranted owingย to 3 arguments that it outlines.ย
Coinbaseย Cryptoย exchange maintains that:
- The SEC Chair persistsย to state publicly that there will be no rulemaking.
- The SECโs enforcement actions confirm that it is not seeingย as Coinbaseโs petition.
- The SEC has ignored other cryptocurrency industry petitions for years.ย
Clearly, Coinbaseย Cryptoย exchange thinksย that the SEC is purposefully dragging its heels on creating formal regulations and regulations rather than sticking to a process of โregulation by enforcement.โย
โ Regulations Already Existโ
Regardlessย of the arguments and instances provided by Coinbaseย Cryptoย exchange, the SEC and its Chair, Gary Gensler, are equally adamant that regulations are in place.ย
Gensler spoke at the House Appropriations Subcommittee on Financial Services and General Government on March 29, stating:
โThe regulations essentially already exist, sir. Theyโre wasย known securities regulations, and so there are disclosure regulations for when somebody tries to raise money from the public,โ Gensler said.ย
This clearly outlines the SECโs approach to cryptocurrency, where it believes almost all coins would be considered securities and thus be regulated under existing laws.ย
The other side
- The battle betwixt the SEC and Coinbaseย Cryptoย exchange is ongoing, but itย canย potentially lead to the Unitedย States exchange looking to other shores for its operations.ย
Why This Matters
If the SEC persistsย to hold all cryptocurrencies to securities laws, it will be tough for cryptocurrency corporations to flourish in the Unitedย States, especially with other countries setting up friendly frameworks.ย
Read more about the SECโs pressure on Coinbase:
SECโs Response Spurs Calls for Coinbaseย Cryptoย exchange to Leave the U.S.
Read more about how the Unitedย Kingdom is looking to regulate crypto:
Cryptocurrency Treated Like Gambling or Stocks? Unitedย Kingdom Regulatoryย authorities Divided
