SEC's Shocking 4-Month Delay in Crypto Clarity Response to Coinbase

SEC's Shocking 4-Month Delay in Crypto Clarity Response to Coinbase
Hold onto your hats, crypto enthusiasts! The United States securities regulator is playing a game of hide-and-seek with Coinbase. They've just asked for a four-month extension to gather their thoughts and respond to Coinbase's plea for some much-needed regulatory clarity in the cryptocurrency world.

The Securities and Exchange Commission (SEC) has recently submitted a letter to the U.S. Court of Appeals for the Third Circuit on June 13. In the letter, the SEC has requested an extension of 120 days to respond to Coinbase's appeal, which urges the commission to establish updated regulations and offer more comprehensive guidance on the legal framework surrounding cryptocurrencies.

In response to the court's order on June 6, the SEC has issued a letter addressing whether it is rejecting the rulemaking or requiring additional time for a response. 

The commission stated that it has not yet made a decision regarding the petition, either in its entirety or in part. Additionally, the SEC dismissed Coinbase's request for a writ of mandamus, asserting that it lacks merit.

According to the regulator, they asserted that the mandamus petition should be dismissed. However, they expressed their expectation to provide a recommendation on Coinbase's petition for rulemaking within the upcoming 120 days.

Following the receipt of the letter, Coinbase's Chief Legal Officer, Paul Grewal, took to Twitter to share his response with his 40,000 followers. Grewal highlighted that the SEC had once again reiterated the claim that it had not reached a decision on any new regulations, which he regarded as a "fallacy."

Grewal further pointed out that the letter disregarded explicit statements made by SEC Chair Gary Gensler, affirming that the SEC has no intention of issuing new rules. According to Grewal, the SEC attempted to misconstrue the evidence of a decision contained in those statements and presented them as the decision itself.


 

Grewal went on to emphasize that despite the explicit order from the Court, the SEC has declined to commit to any specific deadline. This refusal to comply with the Court's directive is a significant concern, according to Grewal.

Coincidentally, on the same day the Court issued its order to the SEC, the regulator also filed a lawsuit against Coinbase. The lawsuit accused Coinbase of offering unregistered securities and running an unregistered securities exchange.

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