- 1 Coinbase demanded courts to instruct the SEC to issue regulatory clarity for the industry.
- 2 SEC alleged Coinbase that it has no rights to mandamus, which orders a government agency to fulfill certain duties.
On the alleged demand of Coinbase, SEC has also released a response specifying that it has no right to which duties the agency will attain. Seeing this, Coinbase reacted, and it maintains that the court should force the Commission to act on Coinbase’s recently filed rulemaking petition. It has contended that SEC has to respond within a reasonable time. This mandamus petition was filed in April by Coinbase.
SEC May Choose to Delay Explaining Crypto Rules
The SEC wrote in response to Coinbase that no statute or regulations require the commission to take such action on a specific timeline. The managing partner at Deaton Law Firm and founder of the legal crypto news website Crypto Law John Deaton also replied the same.
He said that the SEC could file a motion to dissolve Coinbase’s petition with the federal court, claiming that the agency is completely within its discretion to move within a reasonable time on the ruling. The SEC highlights that just months had passed since when Coinbase petition was filed, and so less time has passed since it provided the records.
Further, it continues that focusing on the type of changes demanded by Coinbase can affect both crypto assets and the securities. It takes time to make a decision about such topics at first glance.
Coinbase Got a Wells notice in March 2023
Coinbase is a secure online platform to buy, sell, transfer, and store cryptocurrency. It first filed its suit in response to a Wells notice the exchange received in March 2023.
It basically says that the crypto exchange can face legal action over some of its products. The notice that came before clarifies potential enforcement action from the SEC. It is tied with the issue that the agency found with exchanges wallet and prime services.
SEC is the United State Securities Exchange Commission. It is a government agency which is responsible for regulating the security related to the crypto market. Basically, it maintains fair and efficient markets. In a sense, it enforces the law against market manipulation.
Some supporters of the crypto industry might argue that the SEC became active under Gary Gensler’s leadership. They now take several actions against the crypto projects and exchanges. Many ignore and choose not to fight SEC’s action. Kraken is one of them not taking the action by settling over its stalking service. Coinbase cleared that it has no intention to settle, and it has all the resources to push and get regulatory clarity.
The SEC finishes that by saying that the fact that Coinbase, like its policy preferences, addressed immediately does not allow special relief ordering the commission to act on a rulemaking petition that has already been pending almost a year. The agency will keep its response as clear as it can for hedge funds and private equity firms.
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