Unusual for the government to ignore a direct question from a federal court but an evasive answer SEC goes beyond these limits. So commented on the reaction of the Commission to the debate with Coinbase on the case of regulatory clarity, the general counsel of the exchange, Paul Grewal.
We couldn’t wait until our deadline next week to address the SEC’s response to the June 6 order from the Third Circuit. It is unusual for the government to defy a direct question from a federal court. But the SEC’s evasive response goes further, as we set out today. 1/5 pic.twitter.com/ssULmUpzi2
— paulgrewal.eth (@iampaulgrewal) June 17, 2023
June 13 representatives of the Commission requested the court has an additional 120 days to respond to a Coinbase petition calling for a response to the July 2022 appeal. In the latter, the company demanded clarity on the regulation of the crypto industry.
On April 25, the trading platform filed a legal complaint. A month later, the company sent a second one in the format Mandamus – instructions to an official or other person to perform actions that he is obliged by law.
Coinbase lawyers decided to take this step after the SEC called the firm’s claims “unfounded.” Officials indicated that the department is not required to issue new rules, and the company “does not have the right to sue the regulator.”
In a new letter dated June 17, representatives of the platform emphasized that the Commission does not give “direct answers and instead repeats its theses”, although “the court ordered to eliminate a clear inconsistency between the agency’s position in the process and its actions and statements elsewhere.”
According to the document, the SEC’s “silence”, long delays in response, and agency enforcement actions continue to put pressure on the crypto industry. Commission Chairman Gary Gensler “continues to move towards irreparable damage to the US public company and the entire industry.”
Grewal expressed hope that the court will uphold the complaint in the Mandamus format. Coinbase has requested approval of a 60-day deadline for the SEC response starting June 13th.
Earlier, the head of the exchange, Brian Armstrong, said that the agency had gone on a “crusade” against the digital asset industry.
The company took offensive action after receiving notice of an investigation regarding the listing procedure on the site and its products – Coinbase Prime, Coinbase Wallet and staking service Coinbase Earn.
In June, the SEC sued Binance and Coinbase. The latter refused to change the business model due to the Commission’s lawsuit.
Recall, Grewal called the agency’s approach to regulating the crypto industry “undermining US competitiveness.”
On June 15, Coinbase General Counsel responded to the SEC proposal to expand the definition of an exchange to DEX. The specialist stated that the agency’s capabilities “do not include the power to prohibit [децентрализованные платформы] unless expressly authorized by Congress.”
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