- Coinbaseย Cryptoย exchange has taken the SEC to court for clear cryptocurrency rules.
- The SEC has requested the court to dismiss the case.
- Coinbaseย Cryptoย exchange has reiterated its stance in the case seeking court intervention.
The fight for clear cryptocurrency regulatory guidelines in theย Unitedย States persistsย to rage, with Coinbaseย Cryptoย exchange at the frontline.
The cryptocurrency exchange in April dragged the Unitedย States Securities and Exchange Commission to court seeking a โyes or noโ response to a July 2022 petition for clarity on what digital assets constitute securitiesโthe SEC pastย week urged the court to deny Coinbaseโs request to force it to respond to the rulemaking petition.
Coinbaseย Cryptoย exchange, onย theย otherย hand, has no intentions of backing down, as revealed in a recent court filing.
Coinbaseย Cryptoย exchange Maintains SEC Has Made Up Its Mindย
Coinbaseย Cryptoย exchange Chief Legal Officer Paul Grewal revealed that the cryptocurrency exchange had filed a response to the SECโs arguments in a tweet on Monday, May 23.
In the shared filing dated May 22, the cryptocurrency exchange reiterated its belief that the regulatorย ofย theย marketsย had already decided to deny Coinbaseโs petition, pointing at recent statements from SEC Chair Gary Gensler asserting that regulations for the cryptocurrency industry already exist. The SEC in its arguments, itโsย worthย notingย that stated these states as โbaseless,โ arguing that Genslerโs views did not represent the commissionโs views.ย
Coinbaseย Cryptoย exchange attorneys have begged to differ, arguing that the agency has treated statements from the Chair differently in other contexts.
"In enforcement actions, forย instance, the Commission has countered fair notice arguments by contending that public statements by the 'SEC Chairman repeatedly gave market participants notice.'" Coinbaseย Cryptoย exchange attorneys highlighted.ย
The cryptocurrency exchange asserted that the SECโs desire to pursue cryptocurrency enforcement actions left no doubt of its decision to not engage in rulemaking for the industry, validating its request for a writ of mandamus.ย
Coinbaseโs attorneys further argue that even if the SEC has not decided on its petition, the courtโs intervention was still required in light of the agencyโs aggressive enforcement campaign regarding issues raised by the cryptocurrency exchange in its petition.
Inย conclusion, Coinbaseย Cryptoย exchange has requested the court toย makeย available a writ of mandamus, forcing the SEC to respond to its July petition in 7 days or order the regulatingย authority to explain its delay and offer a timeline for its response.
Judging by statements from the SEC chair, the agency will likely not change its stance in the case. Additionally, it has been favored toย gainย by legal specialists. Still, numerous likewise believe that the writ of mandamus case is a strategic ploy by Coinbaseย Cryptoย exchange in preparation for an expected enforcement action from the SEC. The regulatorย ofย theย marketsย served Coinbaseย Cryptoย exchange with a Wells notice in March over plentyย of aspects of its business.
The other side
Why This Matters
The confusing state of Unitedย States regulations is driving enterprises abroad. Coinbaseโs lawsuit seeking court intervention encapsulates the frustration of the industry.
Read this to learn more about the Coinbaseย Cryptoย exchange v. SEC case:
How the SECโs Response Affects Coinbaseโs Case
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