Coinbase slams SEC for refusing to address the glaring inconsistency between its litigating position and its actions and statements elsewhere, and also regurgitating its talking points.
In a recent court order, Coinbase, a leading crypto exchange, has strongly criticized the United States Securities and Exchange Commission (SEC). This is for its failure to provide clear answers and address key questions in their legal dispute.
No Straight Answers from SEC
Lawyers representing Coinbase filed a letter on June 17 with the Court of Appeals. They expressed their disappointment with the SEC’s lack of transparency. Coinbase’s letter specifically referred to the SEC’s inconsistent position and failure to provide direct answers regarding Coinbase’s rulemaking petition. The petition seeks the establishment of a regulatory framework for digital assets.
Coinbase’s response came after the SEC requested an additional 120 days to respond to Coinbase’s rulemaking petition. However, Coinbase argued that the SEC is hesitant to update the Court on its decision-making progress and even resists complying with orders to provide such updates.
According to Coinbase, the SEC’s silence, along with the lengthy delays and enforcement actions, continues to have a detrimental impact on the crypto industry.
Also, Coinbase raised concerns about the actions of SEC Chair Gary Gensler. Further, it stated that his approach could irreparably harm not only Coinbase but also the entire industry.
Unusual Government Defiance
Moreover, Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter on June 17. He highlighted the uncommon nature of the government’s defiance in directly addressing a question from a federal court.
Grewal expressed hopes that the Court would issue a writ of mandamus. Additionally, hoped it would compel the SEC to fulfill its official duties under the law, given that Coinbase’s petition was rejected by the SEC.
In addition to their criticism, Coinbase has requested that the court impose a deadline of 60 days or less. This would start from June 13, the date of the SEC’s extension request, to expedite the resolution of the matter.
SEC Lawsuit Against Coinbase
In a separate legal case, the SEC sued Coinbase on June 6, accusing the trading platform of violating various securities regulations. Notably, the SEC alleges that Coinbase offered cryptocurrencies considered to be unregistered securities.
Coinbase’s battle with the SEC and their efforts to establish a regulatory framework for digital assets continue to unfold, leaving significant implications for the crypto industry as a whole.