Coinbase Accuses SEC Of Deliberately Ignoring Its Petition For Clear Rules• May 24, 2023 5:59 pm • Comments
Coinbase has just made a new public statement where it accuses the SEC of deliberately ignoring its petition for clear regulations for the crypto industry.
The petition by Coinbase was submitted last July and it seems that there still has been no official response.
In fact, a recent hearing by SEC Chair Gensler stated that crypto regulations “already exist” as they are to be treated the same as securities.
Based on these public statements by Gensler and the actions of the SEC, Coinbase has shared in its filing that it is extremely clear what the SEC’s true intentions are.
So far, Coinbase has been very proactive in taking legal action against the SEC as it anticipates that the SEC will soon take legal action against the company.
— Crypto Mak (@crypto__mak) May 24, 2023
“The SEC has no intention of engaging in such a rulemaking in the foreseeable future, and that decision may be unreviewable indefinitely unless the Court grants Coinbase’s mandamus petition,” the firm said in the filing.
A mandamus order, also known as a writ of mandamus, is a legal remedy used to compel a government official or a public authority to perform a specific duty that they are legally obligated to do. The term “mandamus” is Latin for “we command.”
Coinbase sought a writ of mandamus compelling the SEC to respond to its demands in a lawsuit filed at the end of April, with the exchange’s chief legal officer Paul Grewal saying on Wednesday that “we continue to appreciate the Court’s consideration.”
Meanwhile, the SEC is arguing that Coinbase has no grounds to demand any timeline from the SEC and has been trying to dismiss the action.
Whether or not the SEC or Coinbase will win this heated debate is still unknown, but many investors can expect that there will definitely be a new lawsuit coming up between the two parties.
After all, both are not will to give up as there is a lot that is at stake if either party loses.
Coinbase concluded its statement that the SEC is effectively regulating by enforcement which is the key cause of the many problems that are arising in the crypto regulatory environment.
The fact that one of the major crypto exchanges is now taking action on behalf of crypto investors can be seen as good news for some.
Check out the latest from @CoinTelegraph on the SEC's response to Coinbase's petition for clear #crypto regulation. The SEC rebukes the need for imminent rulemaking and seeks denial of the petition. Find out more here: https://t.co/dShvfPV584 #SEC #cryptoregulation #enforcement
— Jervis (⛩,🦖) (@Oxminor) May 24, 2023
Coinbase also hit back at the SEC, saying the latter’s argument that – regulated entities should wait to be sued – ignores its obligations to create significant new legal standards through rulemaking and not enforcement.
After failed attempts to get a response from the SEC about its stance on proposing and adopting rules to govern the regulation of securities that are offered and traded via digitally native methods, a US court ordered the commission to respond to Coinbase’s complaint in ten days.
The Commission then argued that it is under no obligation to issue new regulations and added that Coinbase has no standing to sue the agency. It also said the digital asset industry already has rules and regulations governing it.
🔔Coinbase Fires Back at SEC For Ignoring Its Petition
— Granit Academy (We're hiring) (@granitacademy) May 24, 2023
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