- The US Securities and Exchange Commission (SEC) asks for additional time to respond to Coinbase’s call for clarity on cryptocurrency regulations.
- Coinbase’s Chief Legal Officer, Paul Grewal, expresses frustration over SEC’s delay despite a court’s explicit order.
The U.S. Securities and Exchange Commission (SEC), a top financial watchdog, recently filed its response to the cryptocurrency exchange Coinbase’s request for definitive crypto regulations. This response, which calls for an extension, has stirred a wave of disappointment among Coinbase’s legal representatives.
Back in July 2022, Coinbase petitioned the SEC to provide clear guidelines and increased transparency for the emerging asset class’s regulation. However, this week, the SEC has requested an additional four months to deliver a recommendation concerning Coinbase’s rulemaking petition. This move has provoked the ire of Paul Grewal, Coinbase’s Chief Legal Officer, who took to Twitter on June 14th to voice his discontent, stating the SEC’s refusal to commit to a clear deadline was in direct defiance of a court order.
In a recent letter from the SEC, it was clarified that no decision has been made concerning the enforcement actions or statements made by the SEC Chair regarding the exchange’s rulemaking petition. According to the commission, the order pertains to enforcement actions and the chair’s declarations, but it does not indicate a refusal to consider the exchange’s request for rulemaking.
Grewal further expressed his dismay, highlighting that the SEC completely ignored its Chair’s statements confirming they have no intention to issue clear new rules. He argues that the SEC’s repeated fallacy of non-decisiveness is in itself a decision, as the evidence of those remarks provides an argument that the communication is, in fact, a decision.
The SEC’s reply followed the court’s June 6 order for the commission to confirm if it’s willing to engage in rulemaking, denying it, or if it requires more time to respond. In a surprising twist of events earlier this month, the SEC brought charges against Coinbase, the US’s largest cryptocurrency exchange, accusing it of operating as an unregistered securities exchange, broker, and clearing agency.
This ongoing saga has sparked intense reactions within the crypto sector and broader financial community. On June 12, House Representatives submitted a new bill aiming to restructure the financial regulatory body and unseat Gary Gensler as the SEC’s chair.