In a letter submitted to the Court on June 17, Coinbase’s legal team expressed frustration with the Securities Exchange Commission (SEC) for its failure to provide clear responses regarding Coinbase’s rulemaking petition.
The petition urges the SEC to create a regulatory structure for digital assets. According to Coinbase’s lawyers, the SEC has been evasive and has not provided straightforward answers to the Court’s inquiries.
Coinbase’s recent letter accused the SEC of failing to provide clear answers when questioned by the Court about the inconsistency between its litigation stance and its actions/statements elsewhere. The letter was a response to the SEC’s request for an additional 120 days to respond to Coinbase’s rulemaking petition, which calls for a regulatory framework for digital assets.
Coinbase has accused the SEC of being hesitant to provide the Court with updates on its decision, claiming that the regulatory agency is even resistant to being ordered to update the Court on its progress. According to Coinbase, the SEC’s silence, prolonged delays, and enforcement actions are negatively impacting the cryptocurrency industry.
Also Read: Moody’s Downgrades Coinbase Due to Ongoing SEC Lawsuit
The firm also expressed concern that SEC Chair Gary Gensler’s actions are leading to irreparable harm to both a US public company and the entire industry.
Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter on June 17, expressing that it is uncommon for the government to disregard a direct question from a federal court. Grewal’s comments highlight the perceived unusual nature of the government’s failure to provide a straightforward response in this particular case.
We couldn't wait until our deadline next week to address the SEC's response to the June 6 order from the Third Circuit. It is unusual for the government to defy a direct question from a federal court. But the SEC’s evasive response goes further, as we set out today. 1/5 pic.twitter.com/ssULmUpzi2
— paulgrewal.eth (@iampaulgrewal) June 17, 2023
In hopes of addressing the SEC’s rejection of Coinbase’s petition, Paul Grewal, Coinbase’s Chief Legal Officer, stated that he is anticipating the Court to grant a writ of Mandamus. This court order would require a government official to fulfill their official duties under the law. Grewal’s remarks indicate Coinbase’s desire for legal intervention to ensure the SEC’s compliance with their obligations.
Coinbase is advocating for the Court to establish a deadline of 60 days or less, commencing from June 13, the day when the SEC made its request. By proposing this timeline, Coinbase seeks to expedite the process and prompt the SEC to provide a timely response to their petition.
On June 6, the SEC filed a lawsuit against Coinbase, accusing the trading platform of violating several securities regulations. The allegations primarily revolve around Coinbase’s alleged offering of cryptocurrencies that the regulator deems to be unregistered securities. This separate case adds to the legal challenges faced by Coinbase in relation to its operations and compliance with securities laws.
Also Read: SEC Lawsuit Ripple Effect: BinanceUS Staff Cuts, Coinbase’s Market Share Dented by Robinhood
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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