Late last month, Coinbase — which had previously been hit with a Wells notice, an informal warning from the SEC that is usually followed by a lawsuit — asked the courts to force the agency to clearly explaining what actions they need to take to stay compliant.
The SEC, meanwhile, remained tight-lipped.
Good Discussion Preferred
According to Brian Armstrong – the CEO of Coinbase – his company intends to fight the current trend of regulation through enforcement and seeks to promote cooperation and peaceful discussion about regulation.
“Spent the day in DC meeting with members of Congress. We need US regulatory clarity for centralized crypto players for many reasons – consumer protection, national security, economic growth , etc. We will fight to fix that.”
The exec added that the company is ready to defend itself in court but doesn’t want to and reiterated that he and his exchange are open to good talks with regulators.
The Framework has been established, Gensler said
Despite Coinbase’s willingness to negotiate, Gary Gensler, the head of the SEC, stated in court that the current regulation is clear and that crypto exchanges simply refuse to consider it, according to Bloomberg.
In return, Coinbase requested a clear rule-making guide to comply with, submitted through a notice-and-comment process that would allow the newly clarified rules to be reviewed by the public.
Unfortunately for the exchange, the SEC moved to block the court’s request, saying the regulation could take years to set in stone.
“Coinbase’s desire for faster or different regulatory action by the commission does not entitle it to extraordinary relief from this court. The petition must be denied.”
Paul Grewal, Coinbase’s chief legal officer, took to Twitter to reiterate his firm’s stance that the SEC does not provide an explanation for the companies it regulates.
Today the SEC responded to Coinbase’s petition for a writ of mandamus – asking the court to require the SEC to simply answer yes or no on whether it will make a rule for our industry. The SEC’s response? An echo that might be. 1/7
— paulgrewal.eth (@iampaulgrewal) May 16, 2023
The securities regulator has stated that Gensler’s public comments will not be considered as policy statements – although acknowledging that they may continue to use enforcement actions in lieu of a regulatory framework until they resolve those issues. content.
In the meantime, Coinbase has remained steadfast in its position, saying that they are not listing the securities. According to a spokesperson for the company, the exchange already takes into account the SEC’s guidelines on securities when deciding which tokens to list, which leads them to reject about 90% of applications.
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