The U.S. Securities and Exchange Commission (SEC) has responded to the ongoing dispute with Coinbase following the order from the U.S. Court of Appeal for the Third Circuit.
In a letter sent to the court on June 13, 2023, the securities regulator dismissed Coinbase’s request for prompt action, deeming it an “extraordinary request.” The U.S. SEC argued that it has not yet determined an appropriate course of action due to the extensive scope of Coinbase’s petition, which was filed several months ago and recently supplemented.
The U.S. SEC requested 120 days to address Coinbase’s request to adopt new cryptocurrency rules and provide regulatory clarity. This comes after the court directed the regulator on June 6, 2023, to address its refusal to create such rules within seven days. The regulator also outlined a rough time frame for further action and offered to keep the court informed of their progress by providing updates on October 11, 2023.
However, Coinbase’s legal lead, Paul Grewal, pointed out that the SEC’s response seems to disregard explicit statements made by its chairman, which clearly indicated no new rules would be issued. He noted that the securities regulator treated the remarks as mere indications rather than official decisions.
Grewal also claimed that the U.S. SEC’s lengthy answer demonstrates a persistent unwillingness to provide a specific position on cryptocurrency regulation or commit to a definite timetable for rulemaking.
4) they ignore the clear statements of the Chair that confirm they have no intent to issue new rules, and instead conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision. 3/5
— paulgrewal.eth (@iampaulgrewal) June 13, 2023
Coinbase petitioned the U.S. SEC in July 2022 to adopt a definitive stance on cryptocurrencies. However, the regulator refused to respond to the petition. Instead, it claimed that there was no need for new regulations as digital assets are already considered securities under existing laws.
As of press time, the court’s response to the SEC’s demands and claims and proposed timeline for action are still unknown.
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