Coinbase Seeks Regulatory Clarity, SEC Sues Over Unregistered Activity

• The U.S. Securities and Exchange Commission (SEC) needs more time before deciding whether to respond to Coinbase’s request for regulatory clarity regarding the crypto industry.
• Coinbase filed a motion in court in April to compel the SEC to respond to its July petition requesting guidance for the digital asset industry.
• Last week, the SEC sued Coinbase, alleging it operated as an unregistered securities exchange, broker and clearing agency.

Coinbase’s Request for Crypto Clarity

The U.S. Securities and Exchange Commission (SEC) is still considering a request from Coinbase for regulatory clarity regarding the crypto industry. In April of this year, Coinbase filed a motion in court to compel the SEC to respond to a July petition from the company requesting guidance for the digital asset industry.

SEC Lawsuit Against Coinbase

Last week, however, the SEC sued Coinbase, alleging that it had been operating as an unregistered securities exchange, broker and clearing agency without authorization from the regulator. This prompted U.S Court of Appeals for the Third Circuit to issue an order requiring that the SEC respond within seven days on whether or not they would answer Coinbase’s motion quickly and effectively – citing their recent lawsuit against them as precedence for such action.

SEC Response

The SEC then filed a reply on Monday claiming there was “no merit” in Coinbase’s attempt at getting a speedy response from them about their rulemaking petition due largely because of its broad scope and recently added supplements by Coinbase themselves; they also argued that their lawsuit against them didn’t mean that they had already decided on declining such request – pointing out that any augmentation or modification of current regulations shouldn’t be seen as contradicting existing law enforcement efforts by them either way. Furthermore, they stated that while no deadline could be set at present, it was expected that staff would have a recommendation ready in 120 days regarding said petition.

Coinbase’s Response

Paul Grewal – Chief Legal Officer at Coinbase – responded negatively via Twitter stating how The SEC lawyers were repeating fallacies about no new decisions being made over cryptocurrency regulations despite clear statements from their chairperson otherwise; he also condemned them for declining to commit themselves any deadlines despite explicit orders from court priorly doing so suggesting instead just an “anticipation” of making some kind of recommendation within 120 days instead with little reassurance given beyond this period too .

Conclusion

It remains uncertain if or when we will see any definitive conclusions arising out of this matter between The U.S Securities & Exchange Commission (SEC) and CoinBase as both parties are yet unwilling either side concede much ground with regards to potential timelines or even outcomes here though hopefully things become clearer soon enough moving forward – especially with respect towards greater overall clarity concerning ongoing cryptocurrency regulation within America itself too