• Coinbase has accused the SEC of not creating crypto rules and is now asking the courts to order the SEC to do so.
• The SEC maintains that there are already regulations for crypto which fall under securities law.
• Coinbase believes that the SEC is purposefully dragging its heels on creating formal rules rather than using regulation by enforcement.
Coinbase Condemns SEC and Gensler
Coinbase has accused the U.S. Securities and Exchange Commission (SEC) of not acting towards creating crypto rules, and is now looking for the courts to order it to change its stance. The battle between the SEC and the crypto industry in America is starting to peak, with Coinbase emerging as a champion for those affected by regulators.
Petition For Rulemaking
In a new court filing, Coinbase made damaging accusations against the SEC, after repeatedly seeking clarity on the agency’s mandate to create a framework for crypto regulation. The exchange filed a “petition for rulemaking” last July asking the agency to propose and adopt digital asset securities rules, but without success thus far. Now they have resorted to filing a writ of mandamus – a judicial remedy from a court ordering any government authority to do some specific act – in an effort to get clarification on their petition for rulemaking.
SEC Chair’s Stance
The Third Circuit of the U.S Court of Appeals received this filing in which Coinbase condemned how „the SEC Chair continues to state publicly that there will be no rulemaking“. This statement highlights how disappointed Coinbase are with how long it has taken for any movement from regulators regarding cryptocurrency regulation in America.
Despite these arguments from Coinbase, Gary Gensler – Chairman of the SEC – spoke at House Appropriations Subcommittee on Financial Services and General Government on March 29th where he made clear that regulations already exist regarding cryptocurrencies: “The regulations actually already exist, sir…They’re called securities regulations.“ This outlines how Gensler believes almost all coins would be considered securities under existing laws; furthering his point that specific cryptocurrency regulations are unnecessary as current ones should cover them anyway.
Coinbase’s Champion Role
Despite this argument put forward by Gensler, Coinbase remain adamant that more needs doing when it comes to cryptocurrency regulation in America; leading them into their role as champions of those affected by regulators throughout this process so far. It remains unclear whether or not their attempts at getting answers will be successful anytime soon but either way they continue pushing ahead regardless in pursuit of more clarity when it comes cryptocurrency regulations in America