• The US Securities and Exchange Commission (SEC) has asked for more time to decide whether or not they will respond to Coinbase’s request for regulatory clarity in the crypto industry.
• Coinbase made a motion in April to compel the SEC to respond to their July petition requesting guidance.
• The SEC argued that there is “no merit” to Coinbase’s attempt and that it needs more time before deciding what action to take on the petition.
SEC Delays Answering Coinbase’s Request for Crypto Clarity
The U.S. Securities and Exchange Commission (SEC) says it needs more time before deciding whether or not to respond to Coinbase’s request for regulatory clarity regarding the crypto industry. Last week, the SEC sued Coinbase, alleging the top US crypto exchange operated as an unregistered securities exchange, broker and clearing agency.
Coinbase Files Motion In Court
In April of this year, Coinbase filed a motion in court in order to compel the SEC to respond to a July petition from the company which requested guidance for the digital asset industry. However, despite this effort by Coinbase, the SEC has yet to provide any response or clarification on this matter.
SEC Argues There Is No Merit To Motion
The SEC filed a reply on Monday, arguing there is “no merit” to Coinbase’s attempt at forcing them into making an immediate response regarding their rulemaking petition. They also noted that their ongoing consideration of this matter does not undermine existing law and its recent efforts at enforcing it either.
Coinbase’s Chief Legal Officer Responds
Paul Grewal, Coinbase’s chief legal officer responded publicly with criticism towards the regulator’s reply claiming they ignore clear statements from chair confirming no intent on issuing new rules.
SEC Claims It Needs 120 Days To Make A Recommendation
The SEC argues it should not have been forced into binding itself by any deadline but did mention its staff anticipates being able make a recommendation within 120 days relating back to their rulemaking petition.