- The U.S. Securities and Exchange Commission (SEC), a prominent financial regulatory body, has recently submitted a response to Coinbase’s request for clear cryptocurrency regulations.
- However, instead of providing a definitive answer, the SEC has asked for an extension, which has disappointed Coinbase’s legal representatives.
The U.S. Securities and Exchange Commission (SEC), a prominent financial regulatory body, has recently submitted a response to Coinbase’s request for clear cryptocurrency regulations. However, instead of providing a definitive answer, the SEC has asked for an extension, which has disappointed Coinbase’s legal representatives.
In July 2022, Coinbase had petitioned the SEC to establish transparent guidelines for regulating the emerging asset class. However, this week, the SEC has requested an additional four months to deliver a recommendation regarding Coinbase’s rulemaking petition. This decision has angered Paul Grewal, Coinbase’s Chief Legal Officer, who expressed his frustration on Twitter on June 14th, stating that the SEC’s refusal to commit to a clear deadline was a direct violation of a court order.
The SEC, in a recent letter, clarified that no decision has been made yet regarding the enforcement actions or statements made by the SEC Chair regarding Coinbase’s rulemaking petition. The commission clarified that the court order pertains to enforcement actions and the chair’s statements, but it does not imply a rejection of Coinbase’s request for rulemaking.
Grewal expressed further disappointment, highlighting that the SEC ignored the Chair’s statements confirming their lack of intention to issue clear new rules. He argues that the SEC’s repeated indecisiveness is, in itself, a decision, as the evidence of those remarks presents an argument that the communication is, indeed, a decision.
The SEC’s response followed a court order on June 6th, which required the commission to confirm whether it is willing to engage in rulemaking, deny the request, or if it needs more time to respond. Earlier this month, the SEC surprised the crypto community by filing charges against Coinbase, the largest cryptocurrency exchange in the U.S., accusing it of operating as an unregistered securities exchange, broker, and clearing agency.
This ongoing situation has sparked strong reactions within the cryptocurrency sector and the wider financial community. On June 12th, House Representatives introduced a new bill aimed at restructuring the financial regulatory body and removing Gary Gensler from his position as the SEC Chair.
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