The US Securities and Exchange Commission (SEC) has recently come under fire from a Coinbase executive due to its evasive responses to questions from a US federal court. Paul Grewal, the exchange’s Chief Legal Officer, took to Twitter to voice his concerns about the regulator’s behavior. It appears that, while the SEC has found time to take legal action against Coinbase this month, it still hasn’t responded to the exchange’s rulemaking petition from last year.
Coinbase is seeking a higher court to issue a “mandamus” to the SEC as a result. This type of order would legally obligate the regulator to perform a specific duty or action. In this case, Coinbase wants the SEC to create rules and standards for the crypto industry. Grewal suggested that the exchange would be more understanding if the Commission announced that it needed more time to act on the petition. However, since the SEC never acknowledged it and refused to disclose how much time they need, it indicates that the regulator may not be doing anything about it.
As a result, Coinbase is now asking that the court compel the SEC to report on its activities. Grewal emphasized that the exchange isn’t interested in just an “anticipated” staff “recommendation,” but in a proper report on the regulator’s progress in considering and acting upon their petition. Furthermore, Coinbase wants a response within 60 days.
The SEC’s current stance has left many confused. On one hand, acting chairman Gary Gensler maintains that existing rules are clear, yet the regulator has requested that the court deny Coinbase’s request for rules. At the same time, the SEC ignored a direct order from the court while attempting to crack down on Coinbase, despite having coexisted peacefully for years. Gensler claims that the SEC “stands ready to help,” but so far, their actions have done more harm than good to the US crypto industry.
Opponents argue that the SEC’s evasiveness has pushed the limits of what can be reasonably expected from a regulatory agency. Demanding compliance from Coinbase with non-existent rules is seen as a major concern by the exchange and its supporters. Given this situation, the crypto industry in the US may continue to face regulatory uncertainty and challenges.
While it is crucial for regulators to provide clarity and guidelines to foster a healthy crypto market, their actions should not hinder the development and growth of the industry. The SEC’s recent actions have fueled skepticism about its intentions and ability to regulate the market effectively. It remains to be seen whether the upcoming court proceedings will shed light on these issues and bring much-needed clarity to the US crypto landscape.
Source: Cryptonews
