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- 1 Coinbase files yet another petition asking the SEC to make regulations around Digital assets
- 2 Securities and Exchange Commission says that they’re not obligated under any law to act on the petition
- 3 Coinbase states SEC’s Wells notice against the exchange is a direct threat against their filing
Coinbase has again taken shots at the U.S. Securities and Exchange Commission for ignoring the company’s petition demanding clear rules for the crypto industry.
Coinbase’s Petition for crypto rulemaking
In its latest filing to the Third Circuit of the U.S. Court of Appeals, the company while referring to the SEC chair Gary Gensler said that the actions and words of the SEC and its Chair leave no doubt of the agency pans.
Last July, the company sent a “petition for rulemaking” to the Securities and Exchange Commission asking the regulatory body to propose rules for digital assets. The exchange wanted answers to 50 questions that it sent to the SEC. Answers to those questions will provide regulatory clarity and certainty regarding digital assets.
The SEC is yet to reply to the petition sent by the company last July. During a congressional hearing in March, Gensler mentioned that there are rules that already exist for cryptos to regulate under the security law.
The firm further added in the filing that the commission has no intention of creating regulation in the near future and the decision may stay the same for a while until the court grants Coinbase’s mandamus petition.
The writ of mandamus is basically a legal solution used to force the government or public servants and officials to perform a specific duty that they’re obligated to do.
The exchange sought a writ of mandamus forcing the commission to respond to the lawsuit that it filed in April this year. Paul Grewal, the chief legal officer, said on Wednesday that the exchange appreciates the Court’s consideration.
Coinbase legal battles
The SEC, however, has sought to dismiss the exchange’s writ of mandamus saying that it is an extraordinary remedy. They further added that the petitioner needs to show a clear right to relief for the mandamus to proceed.
The commission further added that the crypto exchange cannot demonstrate such a right and there’s no particular regulation or law that obligates the agency to take such an action in this particular timeline.
Amid the filing of the petition the Securities and Exchange Commission also issued a Wells notice to the crypto exchange. The agency accused the company of unregistered securities staking and threatened enforcement action against the exchange.
The company stated that a threatened suit against Coinbase is a direct charge on Coinbase’s petition for failing to register unspecified digital asset securities under the registration path which does not even exist.
According to the exchange, continuous denial of Coinbase’s petition regarding rulemaking by the regulator is preventing the company from exercising its rights under the Administrative Procedure Act.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
