Coinbase is poised to gain an edge in its ongoing legal battle with the US Securities and Exchange Commission (SEC).
The cryptocurrency exchange has responded to the committee’s request for an additional 120 days to respond to its motion for sentencing by filing a strong response in the US Court of Appeals for the Third Circuit.
Paul Grewal, Coinbase’s chief legal officer, announced the filing, stressing that the cryptocurrency exchange cannot wait until next week’s deadline to address the SEC’s hesitation in response to the previous court order.
According to Grewal, it is highly unusual for a government to ignore a direct investigation from a federal court.
Coinbase CLO asks court to grant Mandoos
On June 13, the SEC sent a letter to the court requesting an additional 120 days to respond to Coinbase’s motion for judgment. The regulator stated that it had not yet decided what course of action to take.
According to Coinbase, the petition Initially filed in the summer of 2022, the SEC is deliberately dodging questions about regulatory frameworks and how the agency oversees the cryptocurrency market in the United States. The lack of regulatory clarity surrounding cryptocurrencies greatly affects both the crypto industry and investors, especially given the agency’s mounting enforcement actions.
Grewal argued that the court should grant mandamus to Coinbase immediately, as the SEC has made it clear that it will not accept the exchange’s solicitations. The exchange has petitioned the court to force the SEC to file a response within 60 days.
Lawmakers have released a draft stablecoin bill
SEC Chairman Gary Gensler has consistently believed that most crypto assets should be classified as securities. However, the issue of jurisdiction regarding whether the Securities and Exchange Commission (SEC) or the CFTC should regulate cryptocurrencies has yet to be resolved, which is causing more confusion.
(embed) https://www.youtube.com/watch?v=T5rnSJKMNFs (/embed)
Meanwhile, the US House Financial Services Committee has taken steps to address these concerns by issuing a draft Stablecoin bill. The committee aims to provide much-needed clarity to crypto regulation in the United States in the coming weeks. The bill would address this regulatory ambiguity and clarify whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) have jurisdiction to regulate the crypto industry.