Top US crypto exchange Coinbase is trying to force the US Securities and Exchange Commission (SEC) to respond to a rulemaking petition filed by the company last year.
Coinbase Chief Legal Officer Paul Grewal tells its 50,100 followers on social media platform X that the crypto company is asking the SEC to clarify exactly how securities laws apply to digital assets.
According to Grewal, the SEC’s previous update on this was not good enough and Coinbase wants a good answer within 30 days.
“We have filed our response with the Third Circuit… The SEC’s unenlightening ‘update’ is merely a bureaucratic pantomime and confirms that nothing short of mandamus will compel the agency to take its obligations seriously. We respectfully request an order for the SEC to act on Coinbase’s petition within 30 days.”
In the filing, Coinbase says the SEC initiated an enforcement action against it without ever explaining how the laws they enforce apply to crypto assets.
“For more than a year, the SEC has refused to act on Coinbase’s petition to begin drafting rules to clarify how it believes the securities laws apply to digital assets.
After bringing an enforcement action against Coinbase under those same laws, this Court quickly ordered the SEC to explain whether it had denied Coinbase’s petition. The Commission sought and was given more time…
The digital asset industry is stuck in an unprecedented catch-22. The SEC requires digital asset companies to register or be sued, and has sued them for failing to register, but still refuses to write rules specifying when the SEC believes registration is required at all and how such registration can be are being reached.
In June, the SEC was granted a reprieve when asked to clarify the matter. At the time, Grewal said the regulator’s lawyers made fallacious arguments that the SEC has not made new decisions on crypto regulation.
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