The United States Securities Exchange Commission (SEC) has responded to Coinbase’s petition for clear cryptocurrency regulations, stating that rulemaking could take years and enforcement actions will continue in the meantime. In a court filing on May 15, the SEC argued that it is not obligated to meet Coinbase’s requirements for regulatory clarity within a short amount of time. The SEC also claimed that Coinbase has called for a complex set of reforms and rule-making that may not be reasonable to implement quickly.
The regulator has requested the court to deny Coinbase’s petition for mandamus, stating that it is an extraordinary remedy, and Coinbase cannot demonstrate a right to relief. In response, Coinbase’s Chief Legal Officer, Paul Grewal, stated on Twitter that the SEC’s filing may be the first time the regulator has explained its views on creating rules for the cryptocurrency industry. He added that there are still many uncertainties that need clarification.
Coinbase had petitioned the Securities and Exchange Commission in March, urging the regulator to issue clear guidelines on the classification of cryptocurrencies and whether they should be considered securities. The petition also requested that the SEC provide a timeline for establishing the regulatory framework for cryptocurrencies. However, the SEC’s latest filing indicates that the regulatory clarity Coinbase seeks may not be forthcoming in the near future.
The US Securities and Exchange Commission (SEC) has indicated that it may take years to create clear regulatory rules for cryptocurrencies, according to a recent court filing. The regulator responded to a petition filed by Coinbase seeking regulatory clarity on the classification of cryptocurrencies as securities.
The SEC argued that Coinbase had asked for a complex set of reforms in an unreasonably short time frame, and that it is not obliged to meet these requirements. The Securities and Exchange Commission also stated that it would continue to use enforcement actions in the absence of clear regulatory rules, but acknowledged that these actions may eventually “inform” future rulemaking. However, the regulator distanced itself from public comments made by its Chair, Gary Gensler, who recently suggested that most cryptocurrencies are securities.
Moreover, the regulator stated that these comments were not formal guidance or policy statements and that the public should not rely on them as such. Coinbase’s Chief Legal Officer, Paul Grewal, noted that there is still much uncertainty in the regulatory environment surrounding cryptocurrencies.
The US Securities and Exchange Commission has argued that it is not under obligation to issue broad new regulations for digital assets as requested by Coinbase in a petition, according to a court filing. The regulator has requested the court deny Coinbase’s petition for mandamus and argued that the firm cannot claim any harm resulting from the SEC’s failure to act on the petition since it was filed. The SEC stated that Coinbase’s request for regulatory clarity on digital assets is a complicated endeavour and cannot be fulfilled in an unreasonably short time frame.
The regulator has argued in court that it is not obligated to create broad new regulations for digital assets in response to Coinbase’s petition for regulatory clarity. The agency has asked the court to deny Coinbase’s petition for mandamus, stating that the firm has requested a complex set of reforms in an unreasonably short time frame. The Securities and Exchange Commission also denied that its enforcement actions on the crypto sector indicate a decision not to engage in rulemaking. Coinbase’s Chief Legal Officer, Paul Grewal, commented that the SEC’s response reinforces the industry’s concern about the lack of clarity on what falls within the agency’s jurisdiction