The battle for clarity in the crypto world is raging on, tensions are rising, and this showdown will be a high-stakes one.
The U.S. Securities and Exchange Commission (SEC) has once again set its sights on a major player, Coinbase, following a similar approach to its previous confrontation with Ripple Labs.
SEC Issues A Response
Coinbase, the largest crypto exchange in the U.S., has found itself in the SEC’s crosshairs, as it continues to call for a clear regulatory framework for the rapidly evolving cryptocurrency industry. In a recent court filing, the SEC has responded to Coinbase’s petition for more lucid rules, suggesting the formulation of such regulations could span years.
Related: Crypto Vs SEC: Will Coinbase’s Petition Triumph Against SEC’s Judicial Scrutiny – Coinpedia Fintech News
Enforcement Actions to Continue
In its response to Coinbase’s plea, the SEC outlined its intent to persist with enforcement actions, a revelation that echoes its previous legal tactics with Ripple Labs. Paul Grewal, Chief Legal Officer at Coinbase, stressed that the SEC’s acceptance of enforcement actions as a means to delineate rules around cryptocurrency indicates a slow and reactive approach to regulating this innovative sector. However, the SEC was quick to caution that public utterances from Chair Gary Gensler should not be misconstrued as formal guidelines or policy statements.
Related: Are Crypto Giants Coinbase And XRP Teaming Up To Bring Down The SEC? – Coinpedia Fintech News
The Wait for Clarity Continues
The SEC’s retort to Coinbase’s plea indicates that the commission is yet to define what falls within its jurisdiction. It cited previous cases where relief to petitioners was denied even when authorities took years to act against their petitions. In essence, the SEC maintains it has the prerogative to deliberate for years before deciding on the petition’s merits.
The regulatory body’s response has reaffirmed its stand that mandamus – a court order compelling a government official to fulfill their official duties – is an “extraordinary remedy.” It argues that Coinbase “does not and cannot demonstrate a right” to this relief.
Grewal expressed on Twitter that the SEC’s court filing might mark its first official stance on whether it should establish rules for the crypto sector. He added, however, that the SEC’s response leaves many questions unanswered.