Coinbase is currently sued by the Securities and Exchange Commission for offering unregistered securities. However, Coinbase has chosen offense as its defense strategy and submitted a rulemaking appeal that was approved by the court.
It means that the court asked SEC to fulfill its duty as a regulatory agency and provide defined regulatory clarity for the industry. SEC lawyers maintained in the court that they have no proper answer or obligation to report Coinbase regarding their internal decision-making process.
However, SEC asked the court to grant them 120 days to submit an appropriate response. However, Coinbase has blasted the Federal regulator in court for failing to submit a reply. Coinbase has filed the petition in the Court of Appeals as part of its legal reaction to the SEC.
Coinbase solicitors grilled SEC officials for delaying the response to Coinbase’s petition regarding rulemaking. This rulemaking petition holds SEC responsible for performing their role as financial regulator and issuing suitable regulatory clarity for crypto entities.
Coinbase Lawyers Claim that SEC is Trying to Avoid Rulemaking Petition
Coinbase lawyers recently argued in the court that SEC officials have refrained from acknowledging the rulemaking petition. Furthermore, Coinbase complained that SEC has continued to avoid submitting a proper answer to their petition and is yet to submit a straightforward reply.
The letter submitted by Coinbase in the court reads that Court has pointed out the dual standards set by SEC in suing crypto firms for offering unregistered securities while failing to issue proper crypto regulations.
This letter is a response to the SEC’s request in the court asking for 120 days to submit an appropriate reply to the rulemaking petition. Coinbase maintained that SEC has remained reluctant to submit an appropriate answer to the Court in terms of rulemaking.
The firm also talked about the silence from SEC officials while other cryptocurrency enterprises are facing the same allegations from the regulator for the same charges.
Coinbase CLO Paul Grewal posted a detailed Twitter thread online where he claimed that SEC has continued to delay responding to orders issued by the federal court. He said that he is expecting the court to issue a writ of mandamus that upholds SEC to step up its responsibility as a federal regulator and issue appropriate regulations for the crypto sector.
At the same time, Coinbase has demanded that SEC reset the deadline to 60 days or less starting from June 13th.
On the other hand, SEC has continued its lawsuit against Coinbase regarding unregistered securities. The federal regulator has started a series of lawsuits recently against various cryptocurrency enterprises. In this regard, the total number of cryptocurrencies facing allegations of being unregistered securities by SEC officials has reached 68.