SEC’s Response to Coinbase Dispute: Cryptocurrency Regulation in Limbo
The U.S. Securities and Exchange Commission (SEC) has officially addressed the Third Circuit's inquiry regarding the ongoing dispute involving Coinbase.
The SEC’s comprehensive reply indicates a persistent reluctance to clarify its position on cryptocurrency regulation or commit to a specific timeline for rulemaking, despite explicit instructions from the court. The SEC rebuffs Coinbase’s request for immediate action, deeming it an “unusual appeal.”
The commission argues that it has not yet determined the appropriate course of action due to the extensive nature of Coinbase’s rulemaking petition, which was filed a few months ago and subsequently supplemented. The SEC considers this to be a reasonable position, given the circumstances.
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Significantly, the SEC overlooks statements made by its chair that clearly indicate a lack of intention to issue new rules. Instead, it conflates these statements as indicative of a decision while denying that they constitute a decision in themselves. In an unexpected development, the SEC has provided an estimated timeline for further action.
The commission’s counsel anticipates being able to provide a recommendation regarding Coinbase’s rulemaking petition within the next 120 days.
They have offered to furnish the court with a progress report by October 11, 2023.
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Coinbase’s petition has pressured the SEC to adopt a definitive stance on cryptocurrency regulation, which has been a source of contention among regulators, cryptocurrency companies, and investors.
The response from the SEC sheds some light on its current position, but it also emphasizes the intricate regulatory landscape surrounding cryptocurrency. The court’s response to the SEC’s recent assertions and proposed timeline for action remains to be seen.
As the SEC proceeds cautiously and meticulously, the crypto industry must continue to navigate an environment characterized by legal uncertainty.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
