Coinbase’s chief authorized officer, Paul Grewal, has criticized the U.S. Securities and Trade Fee (SEC) for its minimalistic authorized response relating to the trade’s request for clearer cryptocurrency laws.
In a Jan. 30 X put up, Grewal highlighted the inadequacy of the SEC’s documentation, which fashioned the premise of its determination to reject Coinbase’s petition for digital asset rulemaking.
The saga started in June 2022 when Coinbase submitted a petition urging the SEC to determine extra clear guidelines for the burgeoning crypto business. Nevertheless, the SEC dismissed this request in December 2023, sustaining that the present securities laws for cryptocurrencies had been satisfactory.
The guts of the rivalry lies within the SEC’s newest filing, dated Jan. 24, 2024. The doc, a compilation of data main as much as the December determination, primarily consists of exterior feedback and data of conferences between the SEC and Coinbase. Notably, these paperwork don’t articulate the SEC’s reasoning behind its determination, presenting an absence of complete rationalization from the fee in its latest submitting.
The one substantial insights into the SEC’s place are gleaned from its preliminary acknowledgment of Coinbase’s petition and the ultimate letter of rejection, each included within the January submitting.
Following the SEC’s December rejection of Coinbase’s rulemaking petition, Coinbase has subsequently requested a court docket evaluate of this determination.
Grewal outlined the timeline for the forthcoming authorized proceedings in his put up, noting key dates: Coinbase’s temporary is due on Mar. 11, the SEC’s response by Apr. 10, adopted by Coinbase’s rejoinder on Could 1. He added that Coinbase “recognize[s] the Third Circuit’s consideration.”
This authorized tussle is about towards the backdrop of the SEC’s June 2023 charges against Coinbase, accusing the trade of buying and selling 13 unregistered securities. Whereas these circumstances are distinct, Coinbase has referenced them in conjunction, declaring its proactive efforts in searching for readability by means of its rulemaking petition, solely to be met with authorized threats.
The decision of the rulemaking petition stays unsure, however its end result may considerably impression future SEC actions towards Coinbase and different crypto corporations, doubtlessly shaping the regulatory house for digital belongings.