Coinbase Says Court Should Grant Mandamus NOW In SEC Case, Here’s What That Means
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June 19, 2023 10:40 am
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What’s mandamus?
The term law term mandamus saw an uptick in searches after Coinbase filed one against the SEC.
By definition, mandamus “is a judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty.”
Coinbase is requesting mandamus in order to get a Federal Judge to force the SEC to set clear guidelines and rules regarding digital assets.
Chief Legal Officer at Coinbase explained more in his most recent threat.
Take a look:
The Court should grant mandamus now because the Commission has decided not to grant Coinbase’s rulemaking petition and Is actively harming the industry. 2/5 pic.twitter.com/O40x9qEBK6
— paulgrewal.eth (@iampaulgrewal) June 17, 2023
At a minimum, the Court should order the Commission to report on Its action –not an "anticipated" staff "recommendation"– in no more than within 60 days and decide the mandamus petition promptly If the Commission still has not acted at that time. 4/5
— paulgrewal.eth (@iampaulgrewal) June 17, 2023
We continue to appreciate the Court's careful consideration. 5/5
— paulgrewal.eth (@iampaulgrewal) June 17, 2023
Here’s what Decrypt reported:
According to the Coinbase filing, the company is requesting “mandamus,” which refers to a court order issued by a higher court to a government agency, commanding them to perform a specific action or duty that they are legally obligated to do.
In layman’s terms, Coinbase is asking a federal judge to force the SEC to set clearer rules and standards for the digital assets industry–the objective of a petition made by the crypto exchange last year.
Although the SEC never responded to that petition, it sued the cryptocurrency company earlier this month alleging that it failed to register as an exchange, clearing house, and broker, despite providing investors these services. The lawsuit also claims that Coinbase sold unregistered securities on their platform.
A judge took note of the SEC’s action against Coinbase, and ordered the federal regulator to respond to the petition. In response, Coinbase said it was still considering what actions it might take.
“The Commission’s refusal to say how much additional time it needs to act on Coinbase’s petition confirms that further delay is futile,” tweeted Grewal, saying, “At a minimum, the Court should order the Commission to report on Its action.”
Coinbase had some incendiary rhetoric for the SEC, saying it “pushes the limits of cognitive dissonance” by demanding compliance with non-existent rules.
John Deaton reminded everyone the SEC’s response to his mandamus filing:
Everyone needs to remember the SEC calling an asset a security does NOT mean it is a security. Here is the SEC admitting that the Court decides if the SEC’s claim or theory is even valid.
(This was the SEC’s response to my Writ of Mandamus). pic.twitter.com/NbncmC8LaN
— John E Deaton (@JohnEDeaton1) June 11, 2023
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