SEC Disregarded Coinbase’s Petition For Crypto Rule Clarity: Coinbase Reacts
The United States Securities and Exchange Commission has motioned a court to deny Coinbase’s petition against them. The regulator claimed the exchange has no justification for demanding crypto regulatory clarity from them.
A few weeks ago, the largest exchange in the US, Coinbase exchange, motioned a federal appellate court in Philadelphia to demand crypto regulatory clarity from the SEC. In response, the SEC has reportedly petitioned another court to deny Coinbase’s request.
According to the court filing by the SEC, the commission claimed it has no obligation to meet the demands highlighted by the exchange in its petition. It added that Coinbase called for complex rulemaking and reforms that take years to complete.
In addition, the regulator said the giant exchange’s demand for a more transparent and different regulatory framework is unrealistic in a very short time. The SEC said Coinbase’s petition does not stop it from responding to its lawsuit.
The SEC Refutes Coinbase Court Petition
According to the report, the Securities and Exchange Commission refuses to address the rulemaking petition made by Coinbase. Meanwhile, the regulator is set to probe and sue the exchange platform for allegedly listing unregistered securities tokens.
The petition filed by Coinbase in July 2022 requested the SEC to state guidelines that show how securities regulations apply to crypto. In addition, it asked the regulator to use a formal notice-and-comment approach so the public could get the rules.
Furthermore, in March this year, Coinbase requested the regulator’s opinion on the concept of crypto staking and rewards earned from the act. However, the SEC refrained from addressing all these petitions as it claimed reforming regulations takes time.
Additionally, the agency said the process of forming the requested regulations is complicated. Hence, the regulator claimed it was not obligated to complete the task at any deadline.
Meanwhile, a few hours before the SEC filed its petition, Gary Gensler, SEC Chairman, hinted at what security in the financial market was. According to the Chairman, security is any investment the public makes with the expectation of making profits with the effort of others.
However, the SEC claimed that the Chairman’s statements were not official guidance or policy declarations. Hence, it urged the public to refrain from relying on them.
Coinbase Reacts To SEC’s Petition
Via a tweet, Paul Grewal, the official legal rep of Coinbase, commented on the SEC’s recent petition. He said SEC pointing out that creating crypto rules takes years, would be the first time the regulator would explain its opinion on the industry’s regulation.
In addition,
Furthermore, Grewal claimed the SEC and its Chairman seemed not to agree regarding their views on the securities concept. The chairman claimed there are existing crypto rules as most crypto assets are securities. However the agency denies his claims.
Grewal continued that SEC’s response to Coinbase’s petition is reinforcing the exchange’s claims that the crypto industry regulatory clarity would help each crypto-related services provider to differentiate and measure their regulatory compliance level.
As it stands, the relationship between the Coinbase exchange and the SEC is fast deteriorating recently. The CEO of Coinbase, Brian Armstrong, commented on the impact of the heavy pressure the exchange faces from the regulator.
Armstrong claimed that Coinbase might consider shifting its business to a more business-friendly environment, like the Bahamas, in the future.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
