In a bold move, leading cryptocurrency exchange Coinbase has responded to the Securities and Exchange Commission’s (SEC) recent reply, dismissing any further delays as futile. The SEC, in its response to Coinbase’s rulemaking petition, revealed that it is yet to determine its course of action regarding the exchange.
Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter to share the company’s official response, emphasizing the urgency of the situation. Grewal expressed concern over the SEC’s evasive response and questioned the agency’s refusal to answer a direct question from a federal court. He asserted that the exchange couldn’t wait until the upcoming week’s deadline to address the SEC’s response, which he deemed unusual and uncooperative.
In its submitted letter, Coinbase drew attention to a crucial piece of evidence—the SEC’s enforcement action against the exchange itself. The exchange argued that the SEC’s demand for compliance with rules that don’t exist, despite the exchange previously urging the commission to create them, clearly demonstrates the agency’s rejection of Coinbase’s rulemaking petition.
Notably, on June 6, the court posed a pivotal question to the SEC regarding its enforcement action, seeking clarification on whether this action signifies a denial of Coinbase’s pending petition. In response, on June 13, the SEC stated that no final decision had been reached but anticipated making a recommendation within the next 120 days.
The crypto community has rallied behind the exchange, with prominent figures expressing support for the exchange’s stance against the SEC. John Deaton, the founder of CryptoLaw, lauded Coinbase’s response as “persuasive and compelling,” highlighting the potential implications for the entire cryptocurrency industry.
Coinbase’s response requests an expedited resolution to the matter. The exchange implores the court to grant its mandamus petition without delay, urging the SEC to file a response within a maximum of 60 days. the exchange emphasizes that this response should not be a mere staff recommendation, as it seeks direct adjudication from the court.
Coinbase Challenges SEC’s Evasive Tactics
Coinbase’s chief legal officer, Paul Grewal, believes that the SEC’s response is an attempt to evade accountability and delay the process. In a series of tweets, Grewal expressed his concerns over the agency’s refusal to address the court’s direct question and its ambiguous stance regarding the exchange’s rulemaking petition.
CryptoLaw founder John Deaton has come forward to applaud the exchange’s strong response to the SEC. Deaton views the exchange’s arguments as compelling and hopes that this case will shed light on the SEC’s treatment of the entire crypto industry.
Coinbase is pushing for an expedited resolution to the ongoing dispute with the SEC. The exchange urges the court to grant its mandamus petition without delay, emphasizing the importance of a timely response from the SEC, rather than a prolonged staff recommendation.
As the battle between the exchange and the SEC intensifies, the crypto industry watches closely, eager to see the outcome of this high-stakes legal showdown.