The U.S. Securities and Exchange Commission (SEC) stated in a June 13 lawsuit that it has not yet acted on requests from Coinbase.
SEC says it has not yet made a decision on how to make rules
In July 2022, Coinbase petitioned the SEC to regulate the cryptocurrency industry, seeking clear legal guidance. Later, in April 2023, Coinbase filed a lawsuit requesting a mandamus injunction that would compel the SEC to act on their regulatory petition.
On June 7, 2023, courts ordered the SEC to answer specific questions within seven days. This led to the SEC’s latest letter, arguing that Coinbase’s “extraordinary” request for a seven-day mandamus injunction is baseless.
The SEC stated that it has not decided what action to take regarding Coinbase’s regulatory petition, nor has it decided to deny it. The regulator also said there should be no specific deadline for any decision. In addition, it said it should not be required to provide periodic reports, as requested by Coinbase.
The SEC said its staff “expects to be able to make a recommendation internally” within 120 days, by Oct. 11. The regulator also said it could provide a status report to the court at the end of that period.
The agency urged the court to deny Coinbase’s request for a mandamus injunction.
Coinbase’s Paul Grewal responds to desk
Coinbase CLO Paul Grewal continued to respond maintain that statements from SEC Chairman Gary Gensler indicate that the agency has no plans to issue new rules.
Grewal insisted those statements are evidence of a decision, even if they are not a decision in themselves, and said the SEC had mixed up these ideas.
The SEC stated in its filing today that this is a “false” claim by Coinbase. It said Gensler’s statements (as well as his regular enforcement actions) are not an implied decision to deny Coinbase’s regulatory petition. The securities regulator insisted it is considering Coinbase’s petition “in the normal course of business”.
Coinbase broadly claims that it has not been given a clear path to register with the SEC. This argument is part of Coinbase’s defense against a separate lawsuit filed by the SEC on June 6 alleging that Coinbase violated securities regulations, including allegations of offering certain cryptocurrency products and services without proper authorization. registration.
The SEC sniffs Coinbase’s seven-day rule request, but could trade in October, first appeared on CryptoSlate.
