Coinbase submits court documents to SEC
Pointed out SEC’s delay in clarifying regulations
Major US crypto asset (virtual currency) exchange Coinbase filed a counterargument against the US Securities and Exchange Commission (SEC) on the 22nd. It argues that it is justified to ask the SEC to respond to a petition for regulatory clarification.
Coinbase is currently in the process of filing a limited lawsuit against the SEC, which the documents relate to. The lawsuit is aimed at demanding a response to Coinbase’s 2022 SEC petition seeking clarification of regulations relating to the cryptocurrency industry.
The appeals court ordered the SEC to respond, but the SEC refused. Coinbase replied that it does not have the right to order a government agency to do its job and that it will take a reasonable amount of time to respond to the petition.
connection: U.S. Court of Appeals Orders SEC to Respond to Coinbase Petition
This time, Coinbase filed a document that refuted the SEC’s response. The company criticized the SEC as follows:
The SEC has not given any indication of a deadline for responding to the petition. Instead, the SEC will ignore the petition from Coinbase and continue its lawsuit against the crypto industry over the very issues raised in the petition.
These actions undermine the SEC’s claim that it is “actively considering” Coinbase’s petition.
The petition called on the SEC to “build a viable cryptocurrency regulatory framework.” Coinbase has criticized the SEC for not providing such a framework or guidelines despite repeated petitions and for arbitrarily filing lawsuits against the cryptocurrency industry.
Coinbase continues:
SEC refuses to promulgate rules outlining criteria for determining whether a cryptocurrency is a “securities” or provide a viable way to register a business if necessary are doing.
Such a refusal should be examined from a judicial standpoint.
What is SEC (Securities and Exchange Commission)?
Established in 1934. Its purpose is to ensure fair trading and investor protection, and prevent insider trading, corporate fraudulent accounting, and market manipulation. It also determines whether virtual currency falls under the category of securities. SEC stands for “Securities and Exchange Commission”, and in Japan the “Securities and Exchanges Surveillance Commission” plays a similar role.
Cryptocurrency Glossary
“SEC has ignored petitions from industry.”
Coinbase quoted SEC Chairman Gary Gensler as saying publicly that “rules[for cryptocurrencies]have already been published.” He noted that the remarks indicate that the SEC does not intend to make any immediate regulation.
It also noted that the SEC has issued a notice (Wells Notice) against Coinbase indicating that it intends to take enforcement action.
Issuing such a notice is itself premised on the SEC believing that existing securities laws are sufficient and that no additional rulemaking around cryptocurrencies is necessary.
It is a form that points out from various angles that the SEC is ignoring petitions from the industry for clear rulemaking.
Overseas Expansion of Coinbase
Coinbase has also begun to focus on overseas markets, partly because of the opaque regulations in the United States. In particular, we are working on markets such as Singapore, Brazil, Canada, Abu Dhabi and Bermuda.
connection: Coinbase acquires license in Bermuda, prepares derivatives market = report
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Kurt Ebenzer, @Khareem Sudlow