Coinbase, a leading cryptocurrency exchange, slams the SEC for avoiding questions and stalling digital asset regulations. The company expresses frustration with the delay in establishing a clear regulatory framework. Coinbase calls for greater transparency and regulatory clarity from the SEC. Coinbase’s criticism comes after the SEC requested additional time to respond to the exchange’s rulemaking petition.
Coinbase’s legal representatives expressed frustration in a letter filed with the US Court of Appeals. They criticized the SEC’s lack of response to their rulemaking petition and requested clear answers. The exchange accused the SEC of repeating talking points instead of addressing inconsistencies. They highlighted the disparity between the SEC’s litigating position and its actions and statements elsewhere.
The letter was a response to the SEC’s submission on June 13, in which the regulatory body sought an additional 120 days to reply to Coinbase’s rulemaking petition. Coinbase alleged that the SEC was reluctant to update the court on its decision and even objected to being ordered to provide progress updates.
Coinbase Argumentation
It argued that the SEC’s silence, prolonged delays, and enforcement actions were having a detrimental impact on the cryptocurrency industry. The exchange’s Chief Legal Officer, Paul Grewal, tweeted about the government’s unusual disregard for direct court questions. Grewal hoped for a writ of mandamus from the court to compel the SEC to fulfill its duties. The tweets expressed the expectation of the SEC to adhere to the law.
Furthermore, Coinbase requested the court to set a deadline of 60 days or less, starting from June 13, for the SEC’s response to the rulemaking petition.
Amidst this development, the SEC filed a separate lawsuit against Coinbase on June 6. The lawsuit accuses Coinbase of violating securities rules by offering unregistered securities in the form of cryptocurrencies. The regulator’s allegations specifically target the cryptocurrency exchange offerings.
The ongoing legal battle between Coinbase and the SEC will be closely monitored. The outcome could have significant implications for cryptocurrency regulations in the United States. The case holds the potential to shape the regulatory landscape surrounding digital assets.
