The SEC urged the judge to dismiss Coinbase’s petition for an explanation of the rules enforced by the stock market watchdog in the crypto industry. Right away, Paul Grewal, Chief Legal Officer at Coinbase expressed concerns about this response. According to him, the SEC will happily continue to oversee the crypto sector by enforcing regulation by force.
The SEC’s response to Coinbase regarding an explanation of the rules applied to cryptocurrencies
For several months, Coinbase and other players in the crypto-sphere have been complaining about there arbitrary regulation imposed by the SEC. The crypto exchange had filed a petition to demand explanations of the rules applied by the stock market policeman. The United States Securities Exchange Commission has just issued an official response to the court regarding this request. She states that developing rules can take years and that enforcement actions will continue in the meantime.
According to documents deposited on May 15, the SEC argued that it was not required to meet Coinbase’s demands. The regulatory authority is also asking the court to reject the request from Coinbase mandamus.
According to an excerpt from this answer relayed by Cointelegraphthe SEC states: Neither the securities laws nor the Administrative Procedures Act require the Securities and Exchange Commission to publish the new general regulations regarding “digital assets” that Coinbase has requested. “.
Until when regulation by force?
Coinbase’s Chief Legal Officer said on Twitter that there was still a lot left on the table. ” The SEC told the court that developing rules could take years and they were in no rush “, he said. He then added:
” The SEC has acknowledged that it will continue to use enforcement action as a substitute for rule-making in the foreseeable future. MBut don’t worry – these enforcement actions could ’cause’ unplanned rulemaking. »
The United States remains one of the few major countries where cryptocurrency regulations are still very vague. Companies call for regulation, but the SEC remains silent on the subject. Could this be a strategy to continually harm the crypto industry?
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