The US Securities and Exchange Commission has asked a judge to deny Coinbase’s request to compel the commission to respond to a rulemaking petition calling for clearer crypto regulation guidelines.
on a court Admission On Monday, the SEC said it is not mandated to meet the requirements Coinbase outlined in the petition, while also arguing that the firm implemented a complex set of reforms and rule-making in an unreasonably short amount of time. has invoked.
“Coinbase’s preference for faster or different regulatory action by the Commission is not entitled to extraordinary relief from this court. The petition must be dismissed.”
As mentioned, Coinbase filed a lawsuit Last month a federal appellate court in Philadelphia alleged that the “SEC refuses to address Coinbase’s rulemaking petition” even as the agency aims to prosecute the firm for listing unregistered securities. To initiate enforcement action.
In July last year, Coinbase filed a petition with the SEC to write regulations on how securities laws apply to cryptocurrency and in a formal notice-and-comment process to allow the public to weigh in. are attached.
The largest crypto exchange in the US also submitted a comment to the agency in March, asking for more clarity on the SEC’s views on staking services, which are what users do to help support the operations of a blockchain. Cryptos lock up assets for a set period of time. And earn rewards in return.
However, the SEC argued in the filing that it takes time to consider regulatory changes.
It is an “inevitably complex endeavor,” the agency said, noting that there is no time frame by which it must complete the task.
For the first time, the SEC explained the views of the court
In response to the SEC filing, Paul Grewal, Coinbase’s chief legal officer, said that this may be the first time that the agency has formally clarified in court its views on whether and how it should make regulations for the crypto industry.
“The SEC told the court that rulemaking could take years and is in no rush,” he said, adding that the agency will continue to use enforcement actions rather than define a regulatory framework.
“The SEC also stated that the public statements by Chair Gensler are not formal guidance or policy statements from the SEC and that the public may not rely on them.”
Relations between the SEC and Coinbase have deteriorated significantly recently.
Back in March, the commission sent a “Wells Notice” to Coinbase, threatening the crypto exchange with legal action regarding some of its listed digital assets, its staking services Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
In response, Coinbase CEO Brian Armstrong accused the agency of engaging in “some really sketchy behavior.”
The crypto boss has also hinted that the exchange may leave the US if regulators do not clarify their vision for the digital asset space.
“Anything is on the table, including relocating or whatever is necessary,” he said. Said During the Innovate Finance Global Summit last month.
