• Coinbase has criticized the SEC for not responding to its rulemaking petition.
• The crypto exchange filed a letter in the U.S. Court of Appeals questioning the regulator’s silence.
• Coinbase’s chief legal officer Paul Grewal said they are asking for a writ of mandamus from the court.
Coinbase Blasts SEC for Lack of Response
Coinbase, a top crypto exchange, has slammed the United States Securities Exchange Commission (SEC) for failing to answer questions asked in the U.S. Court of Appeals as part of its ongoing legal battle with the regulator. In a June 17 letter filed in the court, lawyers for Coinbase accosted the SEC for continuing to dodge Coinbase’s rulemaking petition which calls on them to establish a regulatory framework for digital assets. The firm claimed that it is “unusual” for government officials to defy direct orders from federal courts and that they are asking for a writ of mandamus from the court due to the SEC’s refusal to respond.
Background on Coinbase and its Petition
Coinbase is one of America’s largest cryptocurrency exchanges with over 35 million users worldwide and over $223 billion worth of assets traded since inception. In March 2020, Coinbase submitted an official petition calling on the SEC to create clear rules and regulations surrounding digital assets — something that had been lacking at that time — in hopes that this would reduce regulatory uncertainty within this sector and provide clarity into how businesses should operate within this space going forward.
SEC Requests More Time
The SEC responded by requesting an additional 120 days to reply back to Coinbase’s rulemaking petition, but Coinbase claims that they have yet to receive any response or updates regarding their decision making process since then, leaving many stakeholders discouraged and confused about what will happen next within this industry until further clarification is provided by regulators.
Coinbase Chief Legal Officer Responds
On June 17th, Coinbase Chief Legal Officer Paul Grewal took to Twitter saying “We couldn’t wait until our deadline next week to address the SEC’s response…It is unusual for government officials to defy direct questions from federal courts but [the] SEC continues their evasive response.” He went on further explaining why he believes it is important that they ask for a writ of mandamus from the court due given their current situation with regulators.
In conclusion, it appears as though there is still much confusion surrounding how digital assets should be regulated within America but hopefully we will see some more clarity once both parties come together in order discuss what can be done moving forward so that both sides can come up with mutually beneficial solutions regarding future regulation and oversight in this space