SEC Delays Answering Coinbase’s Request for Crypto Clarity
16. June 2023• The US Securities and Exchange Commission (SEC) has delayed responding to Coinbase’s request for regulatory clarity regarding the crypto industry.
• Coinbase filed a motion in court in April to compel the SEC to respond to a July petition from the company requesting guidance for the digital asset industry.
• Last week, the SEC sued Coinbase, alleging that it operated as an unregistered securities exchange, broker and clearing agency.
SEC Delays Answering Coinbase’s Request for Crypto Clarity
The U.S. Securities and Exchange Commission (SEC) says it needs more time before deciding whether to respond to Coinbase’s request for regulatory clarity regarding the crypto industry.
Coinbase’s Motion
Coinbase filed a motion in court in April to compel the SEC to respond to a July petition from the company requesting guidance for the digital asset industry.
Lawsuit Against Coinbase
Last week, the SEC sued Coinbase, alleging the top US crypto exchange operated as an unregistered securities exchange, broker and clearing agency. That same day, the U.S. Court of Appeals for the Third Circuit issued an order requiring the regulator to respond to Coinbase’s motion within seven days, citing the recently announced lawsuit against the exchange.
SEC Response
The SEC filed a reply on Monday, arguing there is “no merit” to Coinbase’s attempt to compel them to respond quickly and that its ongoing consideration of Coinbase’s rulemaking petition doesn’t undermine existing law and its recent efforts enforcement activities related thereto. The regulator also said its lawsuit against Coinbase doesn’t mean it has decided not not issue any new regulations or guidance regarding cryptocurrency markets or activities therein related thereto. It did however note that its staff “anticipates being in a position to make a recommendation to the Commission regarding that petition within 120 days.”