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- 1 SEC has asked for more time of 4 months, for proper response to the rulemaking petition.
- 2 Coinbase had pleaded in July last year, asking for clarity and guidance on crypto regulations.
In the recent development to the case of Coinbase asking the court’s interference in the issue with the US SEC for clarity on crypto regulations, the financial regulator has asked for more time. Coinbase reported its condemnation to the SEC’s response for its rulemaking request in the court. The crypto exchange considered asking for more time and avoiding the request as the regulator failed to provide the answers.
The lawyers for the leading U.S. crypto exchange filed a letter in the U.S. Court of Appeals. In the letter filed on June 17, it called out the Securities Exchange Commission (SEC) for not properly responding to the rulemaking petition.
Coinbase noted in the letter the clear disparity between the actions and statements of the regulator agency. It still had “no straight answer” to the questions and repeated the talking points in response.
SEC Asked More Time to Respond to Coinbase Plea
Earlier in the past week, on June 13, the SEC responded to the request of Coinbase in the US court. It has asked for 120 days, or about 4 months, to provide the proper response on the demand of crypto regulations and clarity on them.
The ongoing tussle started with the petition filed by the crypto exchange firm to the prominent financial regulator in the US. In the petition, the firm requested the regulator for providing clarity on crypto regulations. For months, there was no response to the plea, while the regulatory enforcement actions were continued against the crypto companies and projects across the industry.
The SEC ramped up its scrutiny and regulatory actions on the wider cryptocurrency industry. Citing the avoidance of its request, Coinbase went to file a narrow action with the U.S Circuit Court. The action came in the wake of efforts to compel the regulator to respond either yes or no to the rulemaking petition.
Legal Charges from the SEC
Many crypto companies across the industry have faced regulatory difficulties following the enforcement actions of the SEC. One of the biggest blows came in June 2023 when the SEC charged Coinbase, along with the other major cryptocurrency exchanges. It charged Coinbase for offering unregistered securities.
Following the instance of the regulator charging the crypto exchange, the Third Circuit Court reportedly issued a short order in the case of Coinbase asking for a Writ of Mandamus. The court cited the SEC’s lawsuit against the crypto exchange and asked if it had made any decision regarding the firm’s rulemaking petition. The court had given the regulator a deadline of seven days.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
