SEC requests more time to respond Coinbase’s call for clarity on crypto

SEC requests more time to respond Coinbase’s call for clarity on crypto

The Securities and Exchange Commission says that it will make a recommendation on Coinbase’s request for a rulemaking within 120 days, but also adds that this action is “without merit.”

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The United States Securities regulator has requested four additional months to respond to Coinbase’s request for clarity on crypto regulatory issues.

In a letter sent to the U.S. Court of Appeals of the Third Circuit on June 13, the Securities and Exchange Commission stated that it needed an additional 120-days to respond to Coinbase’s request to adopt new rules and to provide more clarity regarding the laws governing cryptocurrency.

The letter was sent in response to a June 6, order from the court to the SEC. In that order, the court asked the regulator if they were denying rulemaking or needed more time to reply.

The SEC stated that it has not “decided what action to be taken on this petition in full or in part.” It also claimed Coinbase’s Request for a Writ of Mandamus is “without merit.”

The regulator stated that the mandamus request “should be denied”, but predicted it would be in a position to provide a recommendation regarding Coinbase’s rulemaking petition “within 120 days.”

In response to the letter Coinbase Chief legal officer Paul Grewal informed his Twitter followers that SEC repeated the “fallacy”, that it had yet to decide any new regulations.

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He said the letter ignored the clear statements by SEC Chair Gary Gensler stating that “the SEC does not intend to issue any new rules.”

Grewal stated that “[the SEC] conflates the evidence provided by these statements with the argument that they are themselves a final decision.”

Grewal said, “They refused to commit to a deadline despite Court’s explicit orders.”

The order from the court to the SEC was issued on the same day that the regulator filed a lawsuit against Coinbase, accusing it of offering unregistered security and operating an unregistered exchange.

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