SEC asks for more time to respond to Coinbase’s regulation request.
The United States Securities and Exchange Commission (SEC) has asked for a four-month extension to reply to Coinbase Global Inc’s request for clarification on the regulations surrounding cryptocurrency. Coinbase and Binance were previously sued by the SEC for not registering their staking-as-a-service offering under securities law. Coinbase had initially asked for clarification on several regulatory issues in order to improve transparency and compliance within the rapidly evolving crypto industry. Before the SEC lawsuit was filed, Coinbase had filed a petition asking the court to compel the SEC to provide clear rules for the market.
The SEC clarified in a letter that it has not yet made a decision on whether it will respond to Coinbase’s petition for rulemaking. The agency also emphasized that the ongoing enforcement action should not be seen as an indication of its decision on Coinbase’s rulemaking petition. This statement is a response to Coinbase’s claim that the agency has rejected its petition for regulatory clarity. However, the SEC noted that it has not reached a final decision on the petition, but agency staff anticipates making a recommendation within the next 120 days.
The SEC has reiterated that Coinbase must continue to comply with the existing legal framework until the SEC proposes new rules. Paul Grewal, Coinbase Inc’s Chief Legal Officer, expressed disagreement with the SEC’s claim on Twitter. The disagreement underscores the importance of transparent and open dialogue between regulatory authorities and industry stakeholders. It highlights the need for enhanced communication channels to address differing interpretations and provide clearer guidance on the SEC’s regulatory intentions and any potential rulemaking efforts.
The lack of consensus on the SEC’s stance on new regulations is creating confusion, making it challenging for businesses to plan and adapt their operations accordingly.