- The U.S. Securities and Exchange Commission (SEC) has responded to a request related to its dispute with Coinbase, offering no definitive timeline for creating crypto regulations.
- Despite Coinbase’s insistence on immediate action, the SEC cites the extensive nature of the rulemaking petition as reason for delay, anticipating a recommendation in the next 120 days.
The crypto community has been eagerly awaiting the response of the U.S. Securities and Exchange Commission (SEC) to the Third Circuit’s request in the ongoing tussle with Coinbase. The response, however, doesn’t offer the clarity many had hoped for. The SEC continues to resist outlining its position on cryptocurrency regulation or committing to a specific timeline for crafting rules, notwithstanding the court’s clear directive.
Coinbase’s demand for urgent action is classified by the SEC as an “extraordinary request.” The commission defends its reticence by pointing to the wide-ranging nature of Coinbase’s rulemaking petition, submitted only a few months ago and further supplemented recently. From the SEC’s perspective, it is still evaluating a suitable course of action—a stand it perceives as justifiable under the circumstances.
In a surprising twist, the SEC has sidestepped its chair’s blatant declarations of no intention to issue new rules. It skews these proclamations as proof of a decision, while simultaneously denying the status of these statements as a decision.
Adding a glimmer of hope, the SEC has presented a tentative timeline for future proceedings. The commission’s counsel anticipates the capability to make a recommendation concerning Coinbase’s rulemaking petition within the next 120 days. The court has been promised a status report by October 11, 2023.
The pressure from Coinbase’s petition on the SEC to finalize its stance on cryptocurrency regulation has intensified. The contentious issue of crypto regulation has consistently triggered debates among regulators, crypto companies, and investors. The court’s response to the SEC’s recent assertions and proposed timeline is eagerly awaited.
While the SEC’s response sheds some light on its current position, it accentuates the convoluted regulatory landscape encompassing cryptocurrency. Given the SEC’s conservative and meticulous approach, the crypto industry will continue navigating through the fog of legal ambiguity.