U.S. Court Tells SEC to Respond to Coinbase's Rulemaking Petition Within a Week

The United States Court of Appeals for the Third Circuit has ordered the U.S. Securities and Exchange Commission (SEC) to clarify its presumption connected a rulemaking petition from cryptocurrency speech Coinbase (COIN).

In April, Coinbase filed an Administrative Procedure Act challenge asking the tribunal to unit the SEC's manus and get the regulator to respond to its 2022 petition for ceremonial rulemaking successful the integer assets sector, arguing that the existing requirements are ill-suited for integer assets.

Now, the SEC has been ordered to explicate wrong 7 days if it intends to diminution Coinbase’s request, the reasons for specified a decision, oregon a timeline of erstwhile it expects to travel to a decision.

“Rules of the road, from authorities oregon rulemaking oregon both, indispensable travel earlier enforcement actions. That is wherefore we petitioned the SEC for rulemaking astir a twelvemonth agone successful the archetypal place,” Paul Grewal, Coinbase’s Chief Legal Officer, said successful a tweet thread.

All this comes arsenic the SEC sues Coinbase implicit allegations that it operates an unregistered securities exchange.

“We proceed to judge that the SEC could not beryllium proceeding with litigation against our industry, similar the lawsuit filed against america today, if the SEC had not already decided to contradict our petition for rulemaking,” Grewal tweeted.

The SEC besides needs to explicate wherefore the tribunal shouldn't support overseeing the lawsuit and wherefore the SEC shouldn’t supply Coinbase with regular updates connected rulemaking arsenic asked.

“If the SEC’s reply to our petition for rulemaking is “no,” past they are required by instrumentality to archer us, due to the fact that we person the ineligible close to question that “no” successful court. And determination are superior questions to beryllium asked,” Grewal concluded.