- The crypto exchange is demanding clear answers from the regulator.
- Coinbase and the SEC are embroiled in a legal battle.
Coinbase has demanded that the United States Securities and Exchange Commission (SEC) provide a decisive response to its crypto rulemaking petition. Coinbase’s Chief Legal Officer, Paul Grewal, has called for a mandamus to compel the regulator to issue a clear “yes” or “no” answer within 30 days.
Coinbase’s demand for regulatory clarity began in July 2022 when the company initially filed a rulemaking petition with the SEC, Cointelegraph reported. The petition urged the regulator to establish comprehensive rules governing the cryptocurrency market, including identifying digital assets falling within the securities category.
The SEC’s Prolonged Response and Coinbase
The SEC’s response to Coinbase’s petition has been marked by delays, causing growing concerns between the regulatory body and the cryptocurrency exchange. In a status update provided on October 12, the SEC offered only a vague statement, mentioning that “commission staff provided a recommendation” regarding Coinbase’s petition but did not provide further details.
Coinbase’s response to the SEC’s update was subsequently filed with the U.S. Court of Appeals for the Third Circuit. In its response, Coinbase mentioned that the SEC had resolved not to conduct the rulemaking process they had requested and that the SEC would employ various bureaucratic tactics to delay judicial review unless compelled otherwise.
Despite Coinbase’s continuous efforts to force the SEC into action, the regulatory body has defended its position, arguing against the necessity of meeting Coinbase’s demands and petitioning the court to deny the exchange’s request for a mandamus. As of mid-June, the SEC had requested an additional 120 days to respond to the rulemaking petition, indicating a potential answer by the end of October or early November. In June, the SEC charged Coinbase with operating as an unregistered national securities exchange, broker, and clearing agency.
