Coin Edition -
- Coinbase (NASDAQ:COIN) responds to the SEC’s recent unilluminating update on the platform’s rule-making petition.
- The SEC recently responded that the Commission staff provided a recommendation to the Commission.
- Paul Grewal slams the SEC, commenting that the response had been a bureaucratic pantomime.
Coinbase recently filed a motion in the Third Circuit Court, requesting the court to urge the Securities and Exchange Commission (SEC) to respond immediately to the long, unsettled rule-making petition submitted by the company. The motion intends to issue a mandamus within 30 days, urging the regulators to deliver an official answer on their acceptance or denial of the petition.
Earlier this year, Coinbase petitioned the US SEC to ” propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods, including potential rules to identify which digital assets are securities.” Though the agency remained silent for a long while, recently, the SEC communicated with the Third Circuit Court, leaving further details unrevealed.
Following the SEC’s latest move, Paul Grewal, Coinbase’s Chief Legal Officer, took to Twitter earlier today to unveil the platform’s response to the SEC’s “unilluminating update” on the rule-making petition. According to Grewal’s tweet, the SEC’s response had been a ” bureaucratic pantomime and confirms that nothing short of mandamus will prompt the agency to take its obligations seriously”.
We’ve filed our response with the Third Circuit. Tl;dr: the SEC’s unilluminating “update” is mere bureaucratic pantomime and confirms that nothing short of mandamus will prompt the agency to take its obligations seriously. 1/3 https://t.co/DC1o8EflcH— paulgrewal.eth (@iampaulgrewal) October 14, 2023
Coinbase’s statement revealed that the SEC’s delay in responding and decision-making symbolizes their denial of the rule-making petition. In the protracted legal tussle with the regulators, Coinbase waited over a year for the SEC’s clarifications regarding the crypto regulations. The filing read:
The SEC’s letter reports no action by the Commission itself, nor deigns to inform this Court when the Commission will rouse itself to formally announce the decision to deny Coinbase’s rulemaking petition that it so plainly made a long time ago. Perhaps most importantly, for present purposes, the SEC’s filing does not seek to justify any additional delay.
Per Coinbase’s comments, the SEC’s inadequate update hasn’t answered the Court’s critical answers. Instead, the SEC took over a year to provide a staff-level recommendation to the Commission.
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