SEC requests extra time to respond to Coinbase’s request for clarification on cryptocurrency.
The securities regulator adds that it will issue a recommendation on Coinbase’s request for rulemaking within 120 days but states that the action “has no merit.”
In order to respond to Coinbase’s request for clarity on cryptocurrency regulations, the US securities regulator asked for another four months.
The Securities and Exchange Commission requested an additional 120 days to respond to Coinbase’s request that it adopt new regulations and offer more clarification on the laws governing cryptocurrencies in a letter sent to the U.S. Court of Appeals for the Third Circuit on June 13.
The letter was sent in response to a court order dated June 6 asking the SEC to state whether it was refusing the rulemaking or whether it needed additional time to reply.
The SEC stated that it “has not decided what action to take on that petition in whole or in part” and asserted that Coinbase’s request for a writ of mandamus has “no merit.”
The regulatory body asserted that the mandamus petition “should be denied” but predicted that it will be able to offer a recommendation on Coinbase’s request for rulemaking “within the next 120 days.”
Paul Grewal, the chief legal officer at Coinbase, tweeted to his 40,000 followers in response to the letter that the SEC repeated the “fallacy” that it had not yet made a decision on any new regulations.
He added that the letter neglected clear statements from SEC Chairman Gary Gensler that the SEC has “no intention to issue new rules.”
Instead, “[The SEC] conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision,” Grewal claimed.
1) they repeat the fallacy that they haven't made any decision on new crypto rules; 2) they refuse to commit to any deadline despite the Court's explicit order; 3) they instead "anticipate" making a "recommendation" in 120 days; and most importantly… 2/5
— paulgrewal.eth (@iampaulgrewal) June 13, 2023
Despite the Court’s specific orders, “they refuse to commit to any deadline,” Grewal continued.
The regulator sued Coinbase for offering unregistered securities and operating an unregistered securities exchange on the same day the court issued its order to the SEC.