Coinbase is moving to gain an advantage in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
The crypto exchange has responded to the commission’s request for an additional 120 days to reply to its rulemaking petition by filing a solid response in the U.S. Court of Appeals for the Third Circuit.
Paul Grewal, Coinbase’s Chief Legal Officer, announced the filing, emphasizing that the crypto exchange cannot wait until next week’s deadline to address the SEC’s indecisiveness in response to the previous court order.
According to Grewal, it is highly unusual for the government to ignore a direct inquiry from a federal court.
Coinbase CLO asks court to grant mandamus
On June 13, the SEC sent a letter to the court requesting an additional 120 days to respond to Coinbase’s rulemaking petition. The regulator stated that it has yet to decide on the course of action to take.
According to Coinbase, the petition was initially filed in the summer of 2022, and the SEC is deliberately evading questions regarding regulatory frameworks and how the agency oversees the crypto market in the United States. The lack of regulatory clarity surrounding cryptocurrencies significantly impacts both the crypto industry and investors, particularly considering the agency’s escalating enforcement actions.
Grewal argued that the court should grant mandamus to Coinbase promptly, as the SEC has clarified that it will not entertain the exchange’s petitions. The exchange has petitioned the court to compel the SEC to file a response within 60 days.
Lawmakers release draft stablecoin bill
SEC Chair Gary Gensler has consistently believed that most crypto assets should be classified as securities. However, the jurisdictional question regarding whether the SEC or the Commodity Futures Trading Commission (CFTC) should regulate crypto must be solved, causing further confusion.
Meanwhile, the U.S. House Financial Services Committee has taken steps to address these concerns by releasing a draft stablecoin bill. The committee aims to bring much-needed clarity to crypto regulation in the United States in the coming weeks. This bill will address regulatory ambiguities and show whether the SEC or the CFTC has jurisdiction to regulate the crypto industry.