- Coinbase has been seeking a clear response from the SEC regarding its regulatory petition, which was initially filed in July 2022.
- Coinbase’s latest response criticized the SEC, saying its report was nothing more than “bureaucratic pantomime.”
In an ongoing effort to push the U.S. Securities and Exchange Commission (SEC) to respond to Coinbase’s crypto regulatory petition, the company’s chief legal officer Paul Grewal called for a mandamus within 30 days to order the SEC to force.
The SEC had filed a status update on October 12, but it was vague and stated that “the Commission staff had made a recommendation” without further details.
Since July 2022, Coinbase has been pressing the SEC for a final response regarding its rulemaking petition. This petition urged the SEC to establish rules for the cryptocurrency market, specifically defining the digital assets that should be classified as securities.
After months of waiting for an answer, Coinbase filed a petition for mandamus, seeking a decisive “yes or no” answer from the SEC.
Grewal expressed his dissatisfaction with the SEC’s response. Coin base archived its response to the SEC’s update to the U.S. Court of Appeals for the Third Circuit alleging that the SEC deliberately avoided responding to Coinbase’s requests.
A Quick Response from the SEC – The Need of the Moment?
Coinbase’s response criticized the SEC, stating that its report was nothing more than a “bureaucratic pantomime” and claiming that the SEC had decided not to implement the requested regulations.
The response also highlighted the SEC’s use of bureaucratic tactics to delay judicial review. The company expressed frustration with the SEC’s unwillingness to meet its obligations, and the continued back-and-forth has led to legal action.
Coinbase filed the first petition for regulation in 2022, and because the SEC did not respond quickly, the company sought legal action through a mandamus petition.
The SEC, in turn, has opposed Coinbase’s efforts and asked for additional time to respond to the rulemaking petition, asking for a 120-day extension. This timeline suggests the agency could provide an answer in late October or early November.
SEC decides not to pursue grayscale
Meanwhile, the SEC has reportedly opted not to pursue another legal battle with Grayscale Investments, pushing the deadline for an appeal to pass. This decision means that the SEC will have to work with Grayscale on the application for a spot Bitcoin [BTC] Exchange Traded Fund (ETF).
Historically, the SEC has rejected all spot Bitcoin ETF applications, but the recent ruling in the Grayscale vs. SEC case offers hope for approval. While this move is promising, the SEC reserves the right to deny the filing.