Coinbase criticizes SEC for lack of clarity despite court order.

The cryptocurrency exchange Coinbase has been actively pursuing its case against the US Securities and Exchange Commission (SEC) in order to gain clarity on the regulatory rules for digital assets. The exchange recently criticized the federal securities regulator for failing to provide clear answers to questions asked in the US Court of Appeals. In a letter filed in the court on June 17, lawyers representing Coinbase accused the SEC of offering “no straight answers” in relation to their rulemaking petition.

Coinbase’s rulemaking petition, filed for the first time last year, calls for the SEC to establish a regulatory framework for cryptocurrencies. However, the SEC has denied it every time, after which Coinbase decided to take the matter to court. The cryptocurrency exchange has requested the court to compel the SEC to provide clarity on the cryptocurrency regulatory framework. In their latest letter, Coinbase noted:

“When ordered by this Court to address the stark inconsistency between its litigating position and its actions and statements elsewhere, the SEC still offers no straight answers and instead repeats its talking points.”

The letter was in response to the SEC’s submission earlier this month on June 13, requesting an additional 120 days to reply to Coinbase’s rulemaking petition. The cryptocurrency exchange said that the SEC is reluctant to inform the Court of its decision, saying it “bristles even at being ordered to update the Court on its progress.”

SEC’s Silence Impacting Crypto Industry

Coinbase said that SEC’s prolonged silence, lengthy delays, and its continued enforcement actions continue to impact the cryptocurrency industry of the US negatively. Following the recent lawsuits by the SEC, several cryptocurrency firms are already considering shifting their base to overseas locations.

Last Saturday, June 17, Coinbase’s chief of legal Paul Grewal made a series of tweets stating that it’s “unusual for the government to defy a direct question from a federal court”. Grewal added:

“The Court should grant mandamus now because the Commission has decided not to grant Coinbase’s rulemaking petition and is actively harming the industry. The Commission’s refusal to say how much additional time it needs to act on Coinbase’s petition confirms that further delay is futile. At a minimum, the Court should order the Commission to report on its action – not an ‘anticipated’ staff ‘recommendation’ – in no more than 60 days and decide the mandamus petition promptly if the Commission still has not acted at that time.”

Earlier this month, the SEC sued cryptocurrency exchange Coinbase over the charges of violating securities laws. The exchange is preparing for a court battle to defend its position.