SEC Expects 4 Months To Respond To Coinbase’s Digital Asset Rule Request

Key Points:

• The United States Securities and Exchange Commission (SEC) announced that it is expected to take 120 days to respond to Coinbase’s request to develop rules for trading digital assets.
• The Commission also asked the Court to drop Coinbase’s seven-day lawsuit requiring the agency to develop a seven-day legal framework.
• Previously, cryptocurrency exchange Coinbase had repeatedly alleged that the SEC and its chairman Gary Gensler had frequently ignored requests for rules by companies providing crypto services.

The SEC announced that it is expected to take 120 days to respond to Coinbase’s request to develop rules for trading digital assets.

The agency held that there was no merit to Coinbase’s unusual request for an order to compel the Commission to act on Coinbase’s wide-ranging rule-making petition within seven days. It said it has yet to decide what action to take upon request. In a filing with the US Third Circuit Court of Appeals, the regulator argued that the petition should be denied.

Coinbase Chief Legal Officer Paul Grewal then said the SEC “ignore[d] the clear statements of the Chair that confirm they have no intent to issue new rules, and instead conflate the evidence of a decision those statements provide with an argument that the Statements are themselves a decision, “though its Chair do that “statements by the not – and could not – Commission action denying Coinbase’s rule-making petition.”

Reportedly, Coinbase has requested explicit rules intended to replace existing requirements, and the SEC filed a lawsuit against Coinbase last week, accusing the company of unregistered securities trading. On June 6, the Court gave this agency seven days to clarify its position on Coinbase’s lawsuit. Coinbase sued this agency in April over its response to its 2022 rule-making request.

After receiving a lawsuit, the largest US cryptocurrency exchange also showed a persistent attitude by declaring that it would not destroy any alleged securities tokens. In addition, Coinbase has also repeatedly made allegations that the SEC and Chairman Gary Gensler have frequently ignored requests to develop rules from companies providing crypto services over the years.

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