Coinbase Asked SEC Quickly Responds On The Rulemaking Petition In 30 Days

Key Points:

• Coinbase asked SEC to respond to their rulemaking petition filed in July 2022, following a court-ordered 120-day period.
• The SEC’s staff has made a recommendation to the commission, expected to be disclosed within 30 days.
• Despite the regulatory proceedings, Coinbase must still comply with existing laws.

Coinbase, the prominent cryptocurrency exchange, has taken a formal step to seek regulatory clarity from the U.S. Securities and Exchange Commission (SEC).

Coinbase Asked SEC to Clarify Rules in Limbo

In April 2023, the company submitted a petition for a Writ of Mandamus. Coinbase asked SEC to act on their rulemaking petition filed in July 2022. This move followed a 120-day period granted by the Court.

Paul Grewal, Coinbase’s Chief Legal Officer, confirmed that the company had responded to the Third Circuit Court’s request for action on their petition. The SEC had also provided a court-ordered update in response to Coinbase’s mandamus action.

Coinbase asked SEC for clarity is one of a series of events the exchange has had with the regulator. The SEC sued Coinbase on June 6, claiming the exchange acted as an unregistered broker, exchange, and clearing agency for cryptocurrencies that were securities. On August 4, Coinbase responded by requesting that the SEC action be dismissed on the grounds that cryptocurrency is not subject to the regulator’s control.

SEC’s Recommendation Pending for Coinbase’s Rulemaking Petition

In this update, the SEC shared that its staff had made a recommendation to the commission regarding Coinbase’s rulemaking petition, but the details of this recommendation remained undisclosed. The commission’s counsel submitted a letter addressing the status of the petition, stating that they anticipate making a recommendation to the commission within 30 days under current circumstances.

Despite the ongoing regulatory proceedings, Coinbase must continue to adhere to existing laws as the SEC’s current enforcement actions remain in effect. The exchange’s quest for regulatory clarity reflects the ongoing efforts within the cryptocurrency industry to establish clear guidelines for its operation.

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