SEC Responds to Coinbase's Plea for Crypto Sector Regulations
SEC Rejects Coinbase's Request for Immediate Mandamus, Citing Need for Deliberation
Tue, 16 May 2023, 13:57 pm UTC
The Securities and Exchange Commission (SEC) responded to Coinbase's plea for more specific regulations in the crypto sector.
In an April petition, Coinbase urged federal courts to direct the SEC to create distinct guidelines for cryptocurrency exchanges and businesses. However, on the evening of May 15, the SEC countered, stating that Coinbase has no entitlement to mandamus, a legal order requiring a government agency to execute specific tasks.
The SEC's response mentioned that Coinbase's claim for the court to force the Commission to address the exchange's recent rulemaking petition is invalid, as no statutes or regulations demand the Commission to act within a specific timeframe.
The SEC highlighted that only a few months have passed since Coinbase filed its petition, and even less time has passed since the record was supplemented. The organization emphasized the need for time to deliberate on the significant changes proposed by Coinbase, which could impact both the crypto and securities markets. This is especially crucial considering the Commission's ongoing regulatory and enforcement efforts in this domain.
Under Gary Gensler's leadership, the SEC has been notably active, taking action against cryptocurrency projects and exchanges. While some, like Kraken, have chosen to settle over their staking services, Coinbase has made it clear that they have the resources and resolve to push for greater regulatory clarity.
Coinbase's lawsuit was initially filed in response to a Wells Notice the company received in March 2023. This Notice, which comes before formal regulatory enforcement action by the SEC, pertained to concerns the agency had with the exchange's Wallet and Prime services.
In conclusion, the SEC stated that Coinbase's desire for immediate attention to its policy preferences does not grant it the right to extraordinary relief, ordering the Commission to act on a rulemaking petition that has been pending for less than a year.
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