in a remarkable climbing in the ongoing dispute between the crypto industry and the Securities and Exchange Commission (SECOND), Coinbase has filed in federal court seeking an injunction. The rarely invoked legal maneuver is essentially an official request for a court to order one of the parties to perform their legal duties.
In the given context, Coinbase's strategy employs a court order to pressure the SEC to adopt clear regulations for cryptocurrencies. This bold move suggests a last ditch effort, as obtaining an injunction usually involves overcoming major legal hurdles.
The SEC responded by stating that the regulation of cryptocurrencies is not within its jurisdiction. The commission stated: "The securities laws do not require the Commission to adopt rules such as those proposed by Coinbase." The SEC views its mandate as maintaining fair, orderly, and efficient markets. Still, he has been vague about whether he considers cryptocurrencies to be securities, a crucial point for regulatory clarity.
In response to Coinbase's move, the SECOND further maintained that the comments of its president, Gary Gensler, do not constitute official policy.
Coinbase and others argue that the SEC evasion and subsequent enforcement actions add to the volatility and unfairness of the crypto market. Failure to provide clear regulatory guidance and using the app as a substitute for rulemaking could be seen as a lack of discretion, according to previous Supreme Court rulings.
Coinbase's chief legal officer, Paul Grewal, addressed this situation on Twitter, stating: "The SEC told the court that rulemaking could take years and they are in no rush."
The SEC confirmed that it is, in fact, working on the rules, but did not give a definitive timetable. While a court decision on the mandamus petition could take years, legal experts generally agree that Coinbase's petition may be premature.
