All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- The U.S. Securities and Exchange Commission (SEC) responded to Coinbase’s request for regulatory clarity, indicating that it would take at least four months to provide a recommendation on Coinbase’s rulemaking petition.
- Coinbase’s chief of Legal Paul Grewal slammed the SEC stating that “they have no intent to issue new rules, and instead conflate the evidence”.
Earlier this week on Tuesday, June 13, the U.S. Securities and Exchange Commission (SEC) filed a response to Coinbase’s request for more clarity for crypto regulations. This comes despite Coinbase pursuing the response for a while back even before the recent SEC lawsuit.
On Wednesday, June 14, Paul Grewal, Coinbase’s head of legal, made the announcement, sharing the letter on Twitter. The SEC letter notes that the regulatory authority would need at least four months of recommendation. Also, the federal securities regulator stated:
Commission officials anticipate being able to provide the commission with a recommendation regarding Coinbase’s rulemaking petition within the next 120 days.
It was back in July 2022, that Coinbase had submitted a petition to the SEC asking for clarity on crypto rules and how the asset class should be regulated. Year this year in April 2023, Coinbase sued the SEC over the matter. Outraged by the postponement, Coinbase’s chief of legal Paul Grewal wrote:
They repeat the fallacy that they haven’t made any decision on new crypto rules. They refuse to commit to any deadline despite the Court’s explicit order. They instead “anticipate” making a “recommendation” in 120 days; and most importantly.
They ignore the clear statements of the Chair that confirm they have no intent to issue new rules, and instead conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision.
SEC vs Coinbase
As we know, the US SEC is now embroiled in a legal battle with Coinbase as the Commission has accused Coinbase of violating federal securities laws. Coinbase’s legal team has responded to all the allegations and is ready to take the battle to the high court against the SEC.
Coinbase’s chief executive officer (CEO) Brian Armstrong has recently stated that he is willing to seek legal course for this matter. “Regarding the SEC complaint against us today, we’re proud to represent the industry in court to finally get some clarity around crypto rules,” he said last week.
Armstrong expressed his confidence in facing the court, stating, “I believe we will come out fine.” He also indicated his preparedness to handle a potentially long legal process, saying, “Even if it takes a while, that’s alright.”
Armstrong emphasized the limited portion of assets mentioned in the SEC complaint, noting that Coinbase offers trading for over 200 assets. He pointed out that out of those, only 13 are classified as securities, representing a relatively small percentage. Armstrong defended the company’s stance based on this information.
