Coinbase Urges Court Order to Compel SEC Response on Crypto Rulemaking Petition
Coinbase is pushing for a court order that would force the United States Securities and Exchange Commission (SEC) to act on its crypto rulemaking petition. The company wants the SEC to provide an official answer on whether it will accept or deny the petition within 30 days. In response to the SEC’s vague status update, Coinbase’s chief legal officer, Paul Grewal, criticized the agency for delaying and called for a mandamus to prompt the SEC to clarify its intentions.
Coinbase’s Response to SEC Update
Grewal shared Coinbase’s response to the SEC update, which was filed with the U.S. Court of Appeals for the Third Circuit. The response described the SEC’s report as “mere bureaucratic pantomime” and stated that only a mandamus would compel the agency to take its obligations seriously. Coinbase initially filed the rulemaking petition in July 2022, requesting clear rules for governing the crypto market and defining which digital assets are securities.
SEC’s Opposition and Timeline
The SEC has opposed Coinbase’s requirements and asked the court to deny its petition for mandamus. The agency requested 120 days to respond to the rulemaking petition, suggesting that it may have an answer by late October or early November.
Hot Take: Coinbase Fights for Clarity in Crypto Regulations
Coinbase is taking a strong stance by seeking a court order to compel the SEC’s response on its crypto rulemaking petition. The company argues that the SEC’s lack of clarity is hindering progress in regulating the crypto market. By pursuing legal action, Coinbase hopes to force the agency into providing a definitive answer on its petition. This case could have significant implications for the future of crypto regulations in the United States, as it highlights the ongoing tension between industry players and regulatory authorities.
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