Coinbase demands SEC respond to rulemaking petition

Coinbase is taking strategic actions to gain an upper hand in its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC).

To address the SEC’s request for an additional 120 days to respond to Coinbase’s rulemaking petition, the crypto exchange has filed a strong response in the U.S. Court of Appeals for the Third Circuit. Coinbase’s Chief Legal Officer, Paul Grewal, emphasized the urgency of the situation and highlighted the SEC’s lack of responsiveness to a previous court order, which is uncommon for a government entity.

On June 13, the SEC sent a letter to the court seeking an extension to respond to Coinbase’s petition, stating that it has not yet determined its course of action. Coinbase contends that it initially filed the petition in the summer of 2022 and accuses the SEC of intentionally avoiding inquiries regarding regulatory frameworks and its oversight of the U.S. crypto market. The absence of clear regulations for cryptocurrencies has significant implications for the crypto industry and investors, especially considering the SEC’s increasing enforcement actions.

Grewal argues that the court should promptly grant mandamus to Coinbase, as the SEC has indicated its unwillingness to address the exchange’s petitions. Coinbase has petitioned the court to compel the SEC to provide a response within 60 days.

In the midst of these legal developments, lawmakers from the U.S. House Financial Services Committee have taken a step towards addressing the concerns surrounding crypto regulation. They have released a draft bill focused on stablecoins, aiming to bring much-needed clarity to the regulatory landscape in the United States in the upcoming weeks. This bill will tackle regulatory uncertainties and help determine whether the SEC or the Commodity Futures Trading Commission (CFTC) should have jurisdiction over regulating the crypto industry.

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