Court Gives SEC 10-day Deadline to Respond to Coinbase

US Third Circuit grants Coinbase’s request for a response from the SEC on its rulemaking petition

article-image

Sergii Gnatiuk/Shutterstock, modified by Blockworks

share

The Securities and Exchange Commission has just 10 days to respond to Coinbase’s rulemaking petition.

Coinbase took the SEC to court last week, demanding a response to a request from July 2022. They want the agency to come up with some clear rules on which digital assets are securities and how securities laws would apply to digital assets.

The exchange contends that the US lacks a well-defined and practical system to ensure the crypto market’s seamless operation. But the SEC failed to respond to Coinbase’s petition, the company claims.

“It is unreasonable for the SEC — an agency with over 4,500 employees — to take nine months (and counting) to complete that simple task,” Coinbase said in a federal court filing dated April 24.

But with the court’s ruling, the agency could finally be forced to respond. 

A text-only order — an electronic case docket entry with no attachment — issued Wednesday stated: “[SEC] is ordered to file an answer to the petition for writ of mandamus within 10 days of the date of this order.” An SEC spokesperson declined to comment.

Source: General Docket, Third Circuit Court of Appeals

Paul Grewal, Coinbase’s chief legal officer, tweeted that the exchange appreciated the court’s meticulous evaluation of the matter. 

It’s not just Coinbase that has sought clarity from the SEC. Despite repeated requests from the industry and policymakers, the agency has failed to provide clarity and guidance on whether digital assets are securities are not. 

While Chair Gary Gensler has said he believes “everything else other than bitcoin is a security,” the Commission itself hasn’t codified this position in regulations. Gensler has simply urged developers and platforms to register or face enforcement actions.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

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

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

MicroStrategy discloses the purchase of 16,000 bitcoin throughout November

article-image

Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion

article-image

Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks

article-image

DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely

article-image

Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US

article-image

Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said