Coinbase has doubled down press for a convincing court order the US Securities and Exchange Commission to act on the basis of the company crypto regulation petition.
Coinbase wants an injunction to be issued within 30 days to force the SEC to give an official response on whether it will accept or deny the petition.
The SEC filed a long awaited status update on October 12, vaguely indicating that "commission staff provided a recommendation" to the SEC on Coinbase's petition, but did not disclose further details.
In an October 13 X post, Coinbase Chief Legal Officer Paul Grewal criticized the SEC for dragging its feet and called for an injunction to force the SEC to properly outline its intentions.
We have filed our response before the Third Circuit. Tl;dr: The SEC's unenlightening โupdateโ is mere bureaucratic pantomime and confirms that nothing less than a mandamus will prompt the agency to take its obligations seriously. 1/3 https://t.co/DC1o8EflcH
โ paulgrewal.eth (@iampaulgrewal) October 14, 2023
Grewal also shared that of Coinbase answer to the SEC update it filed with the Third Circuit Court of Appeals.
โThe SEC's unenlightening report is mere bureaucratic pantomime and confirms that nothing less than a mandamus will prompt the agency to take its obligations seriously. It took more than a year and an order from this Court to obtain even a staff-level recommendation,โ the response says, adding that:
"The Commission has decided not to carry out the regulation requested by Coinbase, and will exploit every bureaucratic device in its arsenal to prevent judicial review whenever the Court allows it."
Coinbase initially filed the rulemaking petition in July 2022, asking the SEC to "propose and adopt rules" to govern the crypto market, including potential rules to clearly delineate which digital assets fall under the definition of securities.
After the SEC failed to respond, Coinbase filed an injunction petition nine months later, seeking to have the court compel the SEC to give a โyes or noโ response.
Related: Coinbase Spot Trading Volume Drops 52% Compared to 2022: Report
However, the SEC has responded on multiple occasions, refuting the need to comply with Coinbase's requirements while also asking the court to deny Coinbase petition for mandamus.
In mid-June, the SEC asked the court for additional guarantee 120 days to respond to the request for regulation. This timeline suggests the agency could have a response by late October or early November.
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