SEC snubs Coinbase’s seven-day rulemaking request but could act by October
The U.S. Securities and Exchange Commission (SEC) states: June 13th It submitted to the court that it had not yet decided on Coinbase’s request.
SEC says no decision yet on rulemaking
In July 2022, Coinbase petitioned the SEC to work on rulemaking for the cryptocurrency industry for clear regulatory guidelines. Then, in April 2023, Coinbase filed a petition with the court seeking the issuance of a writ compelling the SEC to act on the rulemaking petition.
On June 7, 2023, the court ordered the SEC to answer certain questions within seven days. This prompted the SEC’s latest letter, which argued that Coinbase’s “unusual” requirement to issue a warrant within seven days had no merit.
The SEC said it had not decided what action to take regarding Coinbase’s rulemaking application, nor had it decided to deny the application. The regulator also said there should be no specific deadline for any decision. Furthermore, they should not be compelled to provide periodic reports upon Coinbase’s request.
The SEC said its staff “expect to be able to make recommendations” internally within 120 days by Oct. 11. The regulator also said it could provide a status report to the court at the end of that period.
The agency asked the court to deny Coinbase’s request for a mandate.
Coinbase’s Paul Grewal Responds to Agency
Coinbase CLO Paul Grewal replied: keep it up SEC Chairman Gary Gensler’s statement indicates that the SEC has no intention of issuing new rules.
Grewal argued that these statements were evidence of a decision, even if they weren’t themselves a decision, and said the SEC confused those ideas.
The SEC said in today’s filing that this is a “false” claim by Coinbase. Gensler’s statement (and regular enforcement actions) was not an implicit decision to reject Coinbase’s rulemaking application, he said. The securities regulator said it was considering Coinbase’s petition “in the course of its ordinary course.”
Coinbase has extensively claimed that it has not been given a clear path to register with the SEC. The allegation is part of Coinbase’s defense in a separate lawsuit filed by the SEC on June 6, alleging that Coinbase violated securities regulations by offering certain cryptocurrency products and services without proper registration. .
A post first appeared on CryptoSlate that the SEC will ignore Coinbase’s seven-day rulemaking request, but may act by October.
