{"id":24143,"date":"2023-05-16T05:52:39","date_gmt":"2023-05-16T09:52:39","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=24143"},"modified":"2023-05-16T05:52:39","modified_gmt":"2023-05-16T09:52:39","slug":"sec-responds-to-coinbase-complaint-crypto-rules-may-take-years","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/05\/16\/sec-responds-to-coinbase-complaint-crypto-rules-may-take-years\/","title":{"rendered":"SEC Responds To Coinbase Complaint: Crypto Rules May Take Years"},"content":{"rendered":"

The Securities and Exchange Commission (SEC) has responded to Coinbase\u2019s complaint. The largest American crypto exchange had sued the SEC on April 25, demanding clarity on crypto regulation. The company filed a petition for a writ of mandamus, which requires the SEC to respond within a reasonable time.<\/p>\n

In the filing, Coinbase asks the SEC to formally clarify \u201cwhich digital assets must be registered as securities.\u201d In addition, the court should require the SEC to answer only \u201cyes or no\u201d to the question of whether it will impose rules on the crypto industry.<\/p>\n

SEC Responds To Coinbase Complaint<\/h2>\n

Late Monday night (EST), the US regulator released its response, and the answer is once again more than disillusioning for the crypto community. Paul Grewal, Coinbase\u2019s Chief Legal Officer (CLO) wrote<\/a> via Twitter that the SEC\u2019s response is \u201can overwhelming maybe\u201d.<\/p>\n

According to him, today\u2019s filing marks the first time the SEC may have formally stated its views on whether and how the SEC will create rules for the crypto industry in court. The SEC told the court that crypto rulemaking may take years and that it is \u201cin no rush\u201d.<\/p>\n

Furthermore, the SEC acknowledged that it will continue to use enforcement actions as a substitute for rulemaking for the foreseeable future. In this regard, Grewal ironically states, \u201cbut not to worry \u2013 those enforcement actions may eventually \u2018inform\u2019 not-yet-planned rulemaking.\u201d<\/p>\n

The SEC also alleges that Coinbase has no right to mandamus directing the regulator to perform certain duties:<\/p>\n

Perhaps recognizing this, Coinbase instead asserts that this Court should compel the Commission to act on Coinbase\u2019s recently filed rulemaking petition. But no statute or regulation requires the Commission to take such action on a specific timeline.<\/strong><\/p>\n

Further, the SEC writes in its reply brief to the court that Chairman Gensler\u2019s public statements are not formal SEC guidance or policy statements and the public cannot rely on them as such. Grewal\u2019s conclusion is therefore devastating:<\/p>\n

Overall the SEC\u2019s response reinforces Coinbase\u2019s long standing concern that our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time, and it is likely to continue changing its mind along the way.<\/strong><\/p>\n

However, Grewal also announced in a tweet that Coinbase will take the opportunity to formally respond to the SEC\u2019s letter next week. It remains to be seen what the next steps for Coinbase are and whether the writ of mandamus can bring anything beneficial to the crypto industry.<\/p>\n

The entire crypto market is currently at a crucial juncture price-wise. The total market cap stands at $1.098 trillion, just above the support line at $1.081 trillion. During the last sell-off, the 200-day EMA acted as crucial support.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The Securities and Exchange Commission (SEC) has responded to Coinbase\u2019s complaint. The largest American crypto exchange had sued the SEC on April 25, demanding clarity on crypto regulation. The company filed a petition for a writ of mandamus, which requires the SEC to respond within a reasonable time.<\/p>\n

In the filing, Coinbase asks the SEC to formally clarify \u201cwhich digital assets must be registered as securities.\u201d In addition, the court should require the SEC to answer only \u201cyes or no\u201d to the question of whether it will impose rules on the crypto industry.<\/p>\n

SEC Responds To Coinbase Complaint<\/h2>\n

Late Monday night (EST), the US regulator released its response, and the answer is once again more than disillusioning for the crypto community. Paul Grewal, Coinbase\u2019s Chief Legal Officer (CLO) wrote<\/a> via Twitter that the SEC\u2019s response is \u201can overwhelming maybe\u201d.<\/p>\n

According to him, today\u2019s filing marks the first time the SEC may have formally stated its views on whether and how the SEC will create rules for the crypto industry in court. The SEC told the court that crypto rulemaking may take years and that it is \u201cin no rush\u201d.<\/p>\n

Furthermore, the SEC acknowledged that it will continue to use enforcement actions as a substitute for rulemaking for the foreseeable future. In this regard, Grewal ironically states, \u201cbut not to worry \u2013 those enforcement actions may eventually \u2018inform\u2019 not-yet-planned rulemaking.\u201d<\/p>\n

The SEC also alleges that Coinbase has no right to mandamus directing the regulator to perform certain duties:<\/p>\n

Perhaps recognizing this, Coinbase instead asserts that this Court should compel the Commission to act on Coinbase\u2019s recently filed rulemaking petition. But no statute or regulation requires the Commission to take such action on a specific timeline.<\/strong><\/p>\n

Further, the SEC writes in its reply brief to the court that Chairman Gensler\u2019s public statements are not formal SEC guidance or policy statements and the public cannot rely on them as such. Grewal\u2019s conclusion is therefore devastating:<\/p>\n

Overall the SEC\u2019s response reinforces Coinbase\u2019s long standing concern that our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time, and it is likely to continue changing its mind along the way.<\/strong><\/p>\n

However, Grewal also announced in a tweet that Coinbase will take the opportunity to formally respond to the SEC\u2019s letter next week. It remains to be seen what the next steps for Coinbase are and whether the writ of mandamus can bring anything beneficial to the crypto industry.<\/p>\n

The entire crypto market is currently at a crucial juncture price-wise. The total market cap stands at $1.098 trillion, just above the support line at $1.081 trillion. During the last sell-off, the 200-day EMA acted as crucial support.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-24143","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/24143","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=24143"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/24143\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=24143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=24143"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=24143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}