The leading cryptocurrency exchange, Coinbase is ramping up pressure on the SEC to accept or reject its petition for crypto asset regulation formally. Coinbase wants a court order mandating an SEC response within 30 days.
This follows vague comments from the SEC on October 12th that staff gave an undisclosed recommendation on the petition to agency leadership. Coinbase slammed the non-update in a legal filing and on Twitter, demanding the opaque bureaucracy give way to clarity.
The petition, originally filed in July 2022, asks the SEC to propose rules outlining which digital assets are securities. This would provide sorely needed regulatory guidance to the crypto industry.
But after no SEC response for months, Coinbase petitioned the court to compel the agency to give a clear yes-or-no decision on the petition. The SEC fired back repeatedly, denying any obligation to meet Coinbase’s specific demands.
On October 30, Coinbase Chief Legal Officer Paul Grewal tweeted, slamming the sec for delaying and forcing the commission to adequately outline its intentions.
This showdown comes as the SEC faces growing pressure to provide rules of the road for crypto. The agency relies on decades-old statutes to determine securities status on a case-by-case basis.
Many critics argue this leaves innovators in limbo about how to comply. Some legal experts warn that regulatory foot-dragging risks are stunting beneficial developments in digital assets.
Coinbase’s direct confrontation with the powerful SEC makes it a flashpoint in debates over crypto oversight. How the courts rule on compelling an SEC response could resonate across the industry seeking regulatory clarity.