Court Requests Clarity from SEC on Coinbase’s Request for Clarity

The SEC has seven days to respond to a court’s request for clarity on Coinbase’s lawsuit against the regulator

article-image

Gorodenkoff/Shutterstock modified by Blockworks

share

The court overseeing the Coinbase v. SEC case — not to be confused with the SEC v. Coinbase case — is seeking clarity on whether or not the SEC, with its legal action against Coinbase, will be denying the exchange its request for clarity.

The court request comes after Coinbase filed a writ of mandamus, essentially asking the court to oversee the commission’s approach to regulating digital assets. 

The SEC is now being asked by the court to respond to a few points within seven days. The Court wants to know if the new suit against Coinbase means that the SEC is moving to deny its rulemaking petition, as well as whether the SEC needs more time to ponder the petition.

In addition, the court — in consideration of the writ of mandamus — wants the SEC to give an argument on why the court should not maintain jurisdiction which would allow it to order periodic reports as well as establish deadlines depending on how the SEC responds to the exchange. 

Coinbase’s chief legal officer, Paul Grewal, tweeted, “We continue to believe that rules of the road, from legislation or rulemaking or both, must come before enforcement actions. That is why we petitioned the SEC for rulemaking nearly a year ago in the first place.”

The SEC has previously been forced by the court to respond to a regulatory clarity request from Coinbase following Coinbase’s lawsuit against the commission earlier this year.  

In a May response, the commission said, “Deliberating over the kind of significant changes sought by Coinbase, which could affect both crypto assets and the securities markets more generally, takes time—including, as here, time to weigh whether or not to initiate a rulemaking proceeding about such topics in the first instance.”

The SEC filed a lawsuit against Coinbase on Tuesday, June 6, and listed multiple charges against the exchange — including the sale of unlicensed securities and operating as an unregistered exchange.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.