Coinbase Urges SEC to Respond to Rulemaking Petition
Leading US crypto exchange Coinbase is putting pressure on the US Securities and Exchange Commission (SEC) to provide a response to a rulemaking petition that was submitted by the company last year. Coinbase’s chief legal officer, Paul Grewal, took to social media platform X to inform his followers that the crypto firm is seeking clarification on how securities laws apply to digital assets. Grewal stated that the SEC’s previous update on the matter was inadequate, and Coinbase wants a proper response within 30 days.
Coinbase Files Motion with Third Circuit
In its filing with the Third Circuit, Coinbase argues that the SEC initiated an enforcement action against the company without explaining how the laws they enforce are applicable to cryptocurrencies. Coinbase has been waiting for over a year for the SEC to act on its petition for rulemaking in order to clarify how it believes securities laws apply to digital assets. The company points out that while the SEC demands registration from digital asset firms or threatens legal action, it has failed to establish clear rules on when registration is required and how it can be achieved.
Delays and Fallacious Arguments
This is not the first time Coinbase has faced delays in getting clarity from the SEC. In June, when asked about the matter, Grewal criticized the regulatory agency’s lawyers for making fallacious arguments and claimed that the SEC had not made any new decisions regarding crypto regulations.
Hot Take: Coinbase Challenges SEC’s Lack of Clarity
Coinbase’s move to force a response from the SEC highlights the frustration felt by many in the crypto industry regarding unclear regulations. As one of the leading crypto exchanges in the US, Coinbase seeks clarity on how securities laws apply to digital assets in order to operate within the boundaries of the law. By filing a motion with the Third Circuit, Coinbase is taking proactive steps to push the SEC to address its rulemaking petition. The outcome of this legal battle could have significant implications for the entire digital asset industry, as it may shape future regulations and provide much-needed clarity for market participants.
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