Crypto exchange Coinbase has been actively pursuing its case against the US Securities and Exchange Commission (SEC) to gain enough clarity on the regulatory rules for digital assets. The exchange recently blasted the federal securities regulator for failing to answer questions asked in the US Court of Appeals. In the June 17 letter filed in the court, lawyers representing Coinbase accused the SEC of offering “no straight answers” in the court in relation to their rulemaking petition.
Coinbase’s rulemaking petition filed for the first time last year, calls for the SEC to establish a regulatory framework for cryptocurrencies. However, the SEC has been denying it every time after which Coinbase decided to take the matter to the court. The crypto exchange has requested the Court to compel the SEC to provide clarity on the crypto regulatory framework. In their latest letter, Coinbase noted:
“When ordered by this Court to address the stark inconsistency between its litigating position and its actions and statements elsewhere, the SEC still offers no straight answers and instead repeats its talking points.”
The letter was in response to the SEC’s submission earlier this month on June 13, requesting an additional 120 days in order to reply to Coinbase’s rulemaking petition. The crypto exchange said that the SEC is reluctant in informing the Court of its decision saying it “bristles even at being ordered to update the Court on its progress”.
SEC’s Silence Impacting Crypto Industry
Coinbase said that SEC’s prolonged silence, lengthy delays, and its continued enforcement actions continue to impact the crypto industry of the US in a bad way. Following the recent lawsuits by the SEC, several crypto firms are already thinking of shifting base to overseas locations.
Last Saturday, June 17, Coinbase’s chief of legal Paul Grewal made a series of tweets stating that it’s “unusual for the government to defy a direct question from a federal court”. Grewal added:
“The Court should grant mandamus now because the Commission has decided not to grant Coinbase’s rulemaking petition and Is actively harming the industry. The Commission’s refusal to say how much additional time it needs to act on Coinbase’s petition confirms that further delay is futile. 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.”
Earlier this month, the SEC sued crypto exchange Coinbase over the charges of violating securities laws. The exchange is preparing for a court battle to defend its position.