The U.S. Securities and Exchange Commission has not made a final decision about whether it will respond Coinbase (COIN)’s petition for rulemaking and the enforcement action taken against the crypto trading platforms isn’t in conflict with any rulemaking decision, said the regulator Tuesday.

The SEC has responded to a recent court order about how it is currently examining the rulemaking petition, in light of its enforcement action against Coinbase. The regulator had sued Coinbase on Tuesday, alleging that it operated an unregistered broker, securities exchange and clearing agency.

The SEC denied that it had made a decision to reject Coinbase’s petition. However, agency staff believe they will provide a recommendation in 120 days.

The regulator said that Coinbase must still adhere to current law until and unless it decides to introduce new rules.

The SEC filing stated that “Coinbase – as everyone else – is bound by the existing law,” regardless of whether or not the Commission decides to adopt the rulemaking sought out by Coinbase. “Coinbase is free asserting its position that the law has not been violated in this enforcement action.”

In a Tweet, Coinbase Legal Chief Paul Grewal stated that the SEC had “ignored” the “clear statements by the Chair that confirm that they have no intention to issue new regulations, and instead conflated the evidence that these statements provide with the argument that the statements themselves are a decision.” The SEC, however, argued that, “statements made by the Chair did not and could not constitute Commission action that denied Coinbase’s Rulemaking Petition.”

The regulator also argued that any SEC decision must be backed by a majority vote of the quorum.

Read more about U.S. Industry says SEC is out of bounds for dragging DeFi into proposed exchange rule

James Rubin is the editor.