The Securities and Exchange Commission (SEC) says that, “in the next 120 days (4 months), it may have a recommendation” to provide greater regulatory clarity on the cryptocurrency ecosystem. This is in response to a court order that forced him to comply with a request for clear rules presented by Coinbase.
In July 2022, the legal team of Coinbase Formally Requested the SEC to Add Regulatory Clarity about the cryptocurrency industry. But the agency did not respond until yesterday, after a federal court ordered it last week to respond to the exchange’s request within 7 days.
At the end of May, Coinbase went to court to apply for a court order of supervision on the regulatory approach that the SEC has on the cryptocurrency ecosystem.
However, the regulatory agency said that the “request for mandamus must be denied”, thereby making it clear that she should not be forced to comply with her duties. And in that sense, anticipates that within 4 months he would make a recommendation on Coinbase’s rulemaking petition.
“Deliberating the kind of significant changes sought by Coinbase, which could affect both crypto assets and broader stock markets, takes time. It requires weighing whether or not to initiate a rulemaking proceeding. on such matters in the first instance”.
SEC response to Coinbase.
The regulator adds that its enforcement action against Coinbase is not inconsistent, even though, so far, it has not taken any decisions on making rules for the cryptocurrency ecosystem.
In fact, until the SEC decides to propose new rules, Coinbase has yet to comply with current law, the agency points out in relation to its current lawsuit.
The SEC: Coinbase is bound to abide by the rules
As reported by CriptoNoticias, early last week, the SEC sued Coinbase for violations of federal securities laws.
The regulator accuses Coinbase of operating a stock exchange, broker, and clearing agency that has not been properly registered.
Commenting on the SEC’s response yesterday, Paul Grewal, Coinbase’s chief legal officer, said the agency “falls into the fallacy of saying it hasn’t made any decisions on new rules for the cryptocurrency industry.”
Grewal added that the response of the SEC ignores the statements of its chairman Gary Gensler, that they do not intend to issue new rules, when in reality that statement is already a decision.
In any case, the SEC had argued that “the statements of the president [Gensler] They do not, and could not, constitute action by the Commission denying Coinbase’s rulemaking request.”
Meanwhile, the cryptocurrency industry is subject to radical changes and lengthy legal battles, as warned by several ecosystem analysts.