- The regulator was given a week
- In case of refusal, the commission must clearly explain the reasons
United States Court of Appeals obliged SEC to Respond to Coinbase Petition on Crypto Industry Rulemaking. They must do so within 7 days.
Note that the SEC has several options for how to respond to the petition. The first is to reject the Coinbase request. But then you need to explain in detail the reasons for such a decision. And the second option is to take the petition for consideration and indicate the time frame when the commission will come to a decision.
Recall that in their petition, Coinbase asked the authorities to introduce clear rules regarding cryptocurrencies. They filed a document last year, but never got a response. The largest crypto exchange requires a detailed description of the mechanisms by which the authorities evaluate the work of crypto companies.
The Commission recently stated that it could take years to regulate the market. And they added that enforcement measures against cryptocurrency companies will continue.
May 15 SEC The US has officially refused to comply with Coinbase’s demands. They appealed to the court with a request to reject the exchange’s application. A series of hearings and appeals followed. The decision has now been made by the United States Court of Appeals for the Third Circuit. Whether the commission will file a new appeal is not yet clear.
The crypto world will be keeping a close eye on the new round of the SEC-Coinbase war. Especially now that the commission has filed a lawsuit against the crypto exchange. Coinbase has now been targeted by regulators in 11 states.