- Coinbase challenges the SEC over alleged evasion, seeking clear digital asset market regulations in an ongoing legal battle.
- SEC’s ongoing silence and delays hamper the crypto industry’s growth, says Coinbase, as tensions escalate.
- As the SEC sues Coinbase for securities rules violations, the exchange pushes for a faster response to its rulemaking petition.
Crypto exchange giant, Coinbase recently fired a salvo at the Securities Exchange Commission (SEC), criticizing its lack of clear responses amidst an ongoing legal dispute. The tech firm has publicly chastised the SEC for its consistent silence and what appears to be procrastination tactics.
SEC’s Silence Provokes Coinbase’s Ire
In a letter to the U.S. Court of Appeals, filed on June 17, Coinbase’s legal team bemoaned the SEC’s repeated failure to deliver substantive answers to the Court regarding Coinbase’s rulemaking petition. The petition aims to push the SEC into creating a definitive regulatory framework for digital assets—a burgeoning space that remains largely unregulated.
The letter pointedly states, “When ordered by this Court to address the stark inconsistency between its litigating position and its actions and statements elsewhere, the SEC still offers no straight answers and instead repeats its talking points.”
This public rebuke followed the SEC’s submission, dated June 13, asking for an additional 120-day extension to respond to Coinbase’s petition. Coinbase has interpreted the SEC’s reluctance to provide updates as a lack of transparency, which it contends is detrimental to the crypto industry.
Coinbase Seeks Mandamus, Calls for Accelerated Action
Coinbase’s chief legal officer, Paul Grewal, took to Twitter on June 17 to voice his dissatisfaction with the government’s elusive behavior. He suggested that the government’s evasion of a direct question from a federal court was highly unusual.
In his tweet, Grewal expressed hope for a writ of mandamus—an order issued by the court directing a government official to fulfill their official duties. Coinbase argues that the SEC has failed by dismissing their petition.
Coinbase is further lobbying the court to expedite proceedings, suggesting a deadline of 60 days or less from the date of the SEC’s extension request.
Unregistered Securities Claims Fuel Legal Firestorm
This confrontation follows a separate SEC lawsuit filed against Coinbase on June 6. The regulatory body claims that Coinbase has violated various securities laws, primarily by offering cryptocurrencies it deems as unregistered securities.
As the SEC continues to be reticent about its stance, Coinbase and, by extension, the broader crypto industry remains in limbo. The outcome of this case could set a precedent for the digital asset space, making the need for clarity and decisiveness from the SEC all the more critical.
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