Coinbase Pushes The SEC For A Response To Rulemaking Petition

It has been just revealed the fact that Coinbase is pushing the SEC for a response to a rulemaking petition. Check out the latest reports about this below.

Coinbase has created a petition for rulemaking, requesting the US Securities and Exchange Commission (SEC) to clarify how securities laws apply to digital assets.

Last year, the petition was submitted, however, the SEC’s update on the matter was insufficient for Coinbase.

The company’s chief legal officer, Paul Grewal, has taken to social media to explain that Coinbase is demanding a proper response from the SEC within 30 days.

“We’ve filed our response with the Third Circuit… The SEC’s unilluminating ‘update’ is mere bureaucratic pantomime and confirms that nothing short of mandamus will prompt the agency to take its obligations seriously. We respectfully request an order to the SEC to act on Coinbase’s rulemaking petition within 30 days.”

Coinbase has filed a complaint stating that the SEC initiated an enforcement action against it without providing any explanation regarding the application of laws to crypto assets.

Coinbase had requested the SEC to begin rulemaking to clarify how securities laws apply to digital assets over a year ago, but the SEC had refused to act on the petition.

Following the enforcement action against Coinbase, the SEC was directed by the court to explain whether it had denied Coinbase’s petition, and the Commission was granted more time to respond.

The digital asset industry is currently caught in a catch-22 situation, where the SEC demands firms to register or face legal action, but fails to create rules to clarify when registration is necessary and how to achieve it.

In June, the SEC was asked to clarify the matter, but the agency’s lawyers were making fallacious arguments that the SEC hasn’t made any new decisions on crypto regulations, according to Grewal.