In a recent twist to the ongoing legal battle between Coinbase and the United States Securities and Exchange Commission (SEC), the regulatory body has requested an additional four months to respond to Coinbase’s plea for regulatory clarity in the cryptocurrency space.
The SEC’s move comes after the U.S. Court of Appeals for the Third Circuit ordered the SEC to address whether it is denying rulemaking or simply requiring more time to respond.
In a letter dated June 13, the SEC expressed its need for an extended timeline, citing a lack of decision-making on Coinbase’s request for new rules and further clarification on crypto-related laws.
The regulator maintained that Coinbase’s petition for a writ of mandamus holds “no merit” and should be denied. However, it did acknowledge its intention to make a recommendation on Coinbase’s petition for rulemaking within the next 120 days.
Coinbase’s chief legal officer, Paul Grewal, took to Twitter to express his disappointment with the SEC’s response.
Grewal criticized the regulator for repeating the “fallacy” that it has yet to decide on any new regulations, despite clear statements from SEC chair Gary Gensler asserting that there is no intent to issue new rules.
Grewal further highlighted the SEC’s refusal to commit to any deadline despite the court’s explicit order.
The SEC’s delayed response follows the recent legal action against Coinbase, wherein the regulator sued the leading cryptocurrency exchange for allegedly offering unregistered securities and operating an unregistered securities exchange.
This lawsuit, combined with the SEC’s request for more time, adds to the mounting tensions between Coinbase and the regulatory body, further fueling the debate surrounding the need for clear regulations in the crypto industry.
As Coinbase awaits the SEC’s decision, the crypto community anxiously watches to see how this battle will shape the future of digital asset regulation in the United States.
