SEC Requests More Time To Respond to Coinbase’s Call for Clarity

The SEC has requested four more months to respond to Coinbase’s call for crypto regulatory clarity.

The US SEC said in a June 13 letter to the US Court of Appeals for the Third Circuit that it requires an additional four months, or 120 days, to respond to Coinbase’s request for it to provide clarity regarding the cryptocurrency industry.

The SEC filed the letter in response to an order made on June 6 which asked the agency to address Coinbase’s call for clarity or if it needs more time to formulate a response.

The SEC’s latest comments come after a string of court filings from both the agency and Coinbase’s part.

Coinbase filed a writ of mandamus against the SEC after the regulator said it was in no hurry to respond to the exchange’s demands for regulatory clarity. In its filing, Coinbase accused the agency of purposefully ignoring its petitions for adopting clear rules for the crypto industry.

The exchange filed the petition after the SEC said it would not entertain Coinbase’s request for immediate clarity of cryptocurrency regulations.

On May 15, the SEC filed a response to a previous petition by Coinbase and said it was not prepared to give into the exchange’s demands.

The agency further stated it is not obligated to meet the requirements set out in Coinbase’s petition. It said the exchange requested complex rulemaking in an unreasonably short amount of time.

Coinbase Demands Regulatory Clarity

The SEC’s May 15 refusal was in response to a narrow action file by Coinbase in April compelling the agency to give a ‘yes or no’ answer to a petition filed in July 2022.

The 2022 petition outlines a list of questions seeking clarity on the nature of securities and how the SEC determines whether an asset is a security.

Coinbase filed a previous petition on March 20 requesting the agency exclude staking from its list of securities.

New Regulations Are Urgently Needed: The SEC Disagrees

In its refusal to give into Coinbase’s request for regulatory clarity, the SEC argued new regulations are necessary as it deems digital assets securities. The agency said:

The rulemaking petition as to which Coinbase seeks an immediate determination asks the Commission to take a series of discretionary actions to replace existing applicable securities laws and regulations with a comprehensive new regulatory regime for the trading of crypto assets that are securities.

The SEC’s reluctance to provide the US with a more precise and comprehensive regulatory regime is particularly concerning at the moment. The agency launched severe action against Coinbase and its rival Binance, accusing both of alleged securities violations.

The move caused panic across the board, highlighting the need for clarity.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.