Coinbase, one of the leading cryptocurrency exchanges, has renewed its call for a court order to compel the U.S. Securities and Exchange Commission (SEC) to respond to its crypto rulemaking petition. In its latest push, Coinbase is seeking a mandamus, which would require the SEC to provide a definitive answer on the fate of its petition within 30 days.
Coinbase’s chief legal officer, Paul Grewal, has continued to press for a swift response from the SEC regarding the company’s crypto rulemaking petition. The ongoing battle between the cryptocurrency exchange and the SEC centers around Coinbase’s request for the regulatory body to establish comprehensive rules governing the cryptocurrency market, including clear guidelines for identifying digital assets classified as securities.
The SEC issued a long-awaited status update regarding Coinbase’s petition. However, the statement provided only vague information, indicating that “commission staff provided a recommendation” to the SEC. The update left many details undisclosed, prompting frustration and further action from Coinbase.
In response to the SEC’s ambiguous statement, Paul Grewal expressed his frustration and called for a mandamus to compel the SEC to provide a clear and official response. Coinbase seeks a definitive answer from the SEC, either accepting or denying its petition, within 30 days. Grewal criticized the SEC for what he perceives as procrastination in addressing the matter properly.
Coinbase vs. SEC legal battle intensifies as regulatory frameworks await clarity
In a statement shared on social media, Grewal stated that the SEC’s unilluminating report is mere bureaucratic pantomime and confirms that nothing short of mandamus will prompt the agency to take its obligations seriously. He also added that it took more than a year and an order from this Court to elicit even a staff-level recommendation. He further mentioned,
“The Commission has resolved not to conduct the rulemaking Coinbase requested, and it will exploit every bureaucratic artifice in its arsenal to forestall judicial review so long as the Court allows it.”
The exchange initially filed its rulemaking petition seeking the SEC’s assistance in establishing clear regulatory frameworks for the cryptocurrency market. This included defining which digital assets should be considered securities and subject to SEC oversight.
Frustrated by the SEC’s lack of response, Coinbase filed a petition for mandamus nine months later, aiming to force the SEC into providing a clear “yes or no” answer regarding their request.
However, the SEC has repeatedly challenged Coinbase’s demands, asserting that there is no necessity to meet their requirements and requesting the court to reject the exchange’s petition for mandamus.
The SEC requested an additional 120 days to respond to the exchange’s rulemaking petition. This request suggests that the regulatory body may have a formal response by the end of October or early November. This extended timeline reflects the complexity and significance of the issues involved in regulating the cryptocurrency market
