The SEC received a petition for rulemaking from the cryptocurrency exchange in July, and a Wells notice for possible securities law breaches was delivered to the exchange in March.
By submitting a response in support of its petition for a writ of mandamus to the United States Securities and Exchange Commission (SEC), cryptocurrency exchange Coinbase has made a critical step in its quest for regulatory clarification on digital assets.
Paul Grewal, the chief legal officer of Coinbase, described the mandamus as a “tailor-made remedy” for the particular facts of the case. The exchange is asking the SEC to adopt rules governing the regulation of securities issued and exchanged electronically.
Coinbase first petitioned the SEC in July, requesting that the body put up and enact thorough rules governing the regulation of securities in the digital asset industry. A list of 50 questions was also provided in the petition for the government to think about as it created these regulations.
The exchange asserts that although the SEC has already decided to reject its July petition, the agency has not made this decision public in its filing on May 22nd. Coinbase’s decision to submit a reply in favor of the mandamus petition shows its dedication to pursuing legal action and promoting more regulatory clarity in the rapidly changing world of digital assets.
Furthermore, the SEC’s inaction is allegedly part of a larger pattern:
“The SEC does not dispute that since 2017 it has received five digital-asset-related rulemaking petitions and has acted on none.”
The SEC should have to answer to Coinbase’s petition from July within seven days, according to Coinbase, or provide an explanation and a deadline.
On March 22nd, Coinbase got a Wells notice informing it that the SEC may take legal action against company for “possible violations of securities laws.”