Coinbase, a leading cryptocurrency exchange, has criticized the United States Securities and Exchange Commission (SEC) for its evasive responses during their ongoing legal dispute.
In a letter filed on June 17th with the U.S. Court of Appeals, Coinbase’s lawyers expressed their dissatisfaction with the SEC’s failure to address Coinbase’s rulemaking petition, which urges the SEC to establish a regulatory framework for digital assets.
The letter from Coinbase accused the SEC of avoiding direct answers and instead reiterating talking points when asked to address the inconsistency between its litigating position and its actions and statements elsewhere.
This response was prompted by the SEC’s request on June 13th for an additional 120 days to respond to Coinbase’s rulemaking petition.
Coinbase further claimed that the SEC is unwilling to provide updates on its decision to the Court, demonstrating its reluctance by expressing discontent even when ordered to do so.
The prolonged silence from the SEC and the resulting delays in decision-making, according to Coinbase, continue to burden the crypto industry. Furthermore, Coinbase expressed concerns that SEC Chair Gary Gensler’s actions are leading to irreparable damage to both a U.S. public company and the entire industry.
Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter on June 17th, highlighting the government’s uncommon defiance of a direct question from a federal court.
Grewal expressed hope that the court would issue a writ of mandamus, compelling the SEC to fulfill its official duties under the law, considering that Coinbase’s petition had been rejected.
Additionally, Coinbase has requested that the court impose a deadline of 60 days or less, commencing from June 13th, as an alternative to the SEC’s proposed 120-day extension.
In a separate case on June 6th, the SEC filed a lawsuit against Coinbase, alleging that the exchange had violated several securities regulations, primarily by allegedly offering cryptocurrencies that the regulator considers unregistered securities.
Coinbase’s criticism of the SEC’s lack of transparency and failure to address their concerns reflects the growing tensions between cryptocurrency companies and regulatory authorities.
As the crypto industry continues to evolve, the outcome of these legal battles will have significant implications for the future of digital assets in the United States.
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