Coinbase, the popular cryptocurrency exchange, has strongly criticized the United States Securities and Exchange Commission (SEC) for failing to provide clear answers to questions posed in the U.S. Court of Appeals. The exchange accuses the SEC of evasiveness in relation to Coinbase’s rulemaking petition, which calls for establishing a regulatory framework for digital assets.
Coinbase Accuses SEC of Dodging Court’s Questions :
In a letter filed with the Court on June 17, Coinbase’s legal team condemned the SEC’s failure to address the stark inconsistency between its litigating stance and its actions and statements elsewhere. The exchange expressed frustration with the lack of transparency, arguing that the SEC’s silence and delays have a detrimental impact on the cryptocurrency industry as a whole.
SEC’s Request for Extension Draws Coinbase’s Ire :
Coinbase’s response came in light of the SEC’s submission on June 13, which sought an additional 120 days to respond to Coinbase’s rulemaking petition. The exchange claimed that the SEC is reluctant to update the Court on its decision, highlighting the agency’s resistance to fulfilling its obligations. Coinbase believes that the SEC’s actions harm its operations and the entire crypto industry.
Coinbase Urges Court to Intervene :
Coinbase’s Chief Legal Officer, Paul Grewal, expressed his surprise at the government’s defiance of a direct question from a federal court through a series of tweets. Seeking resolution, Coinbase hopes the Court will grant a writ of Mandamus, compelling the SEC to fulfill its official duties. Furthermore, Coinbase is requesting a shorter response deadline of 60 days, starting from June 13.
SEC Lawsuit Adds to Coinbase’s Woes :
In a separate legal case, the SEC sued Coinbase on June 6, alleging that the platform violated various securities rules by offering unregistered securities in the form of cryptocurrencies. This lawsuit further complicates the relationship between Coinbase and the SEC, intensifying the ongoing legal battle between the two parties.
Coinbase’s letter to the Court highlights the exchange’s frustration with the SEC’s evasive responses and delays in addressing its rulemaking petition. With the SEC’s actions impacting the crypto industry, Coinbase seeks intervention from the Court, hoping for a resolution that will establish a regulatory framework for digital assets while protecting the interests of all parties involved.
