SEC does not intend to participate in the creation of a regulatory framework for digital assets and will ignore the demand of Coinbase if the court does not satisfy the petition of the latter. This is stated in the new petition of the bitcoin exchange.
On April 25, 2023, the trading platform filed a lawsuit to seek an SEC response to the July 2022 filing. In it, the company demanded to clarify the regulation of the crypto industry.
The exchange took offensive action after receiving notice of an investigation into the listing process on the exchange and its products — Coinbase Prime, Coinbase Wallet, and staking service Coinbase Earn.
The SEC called the firm’s claims “unfounded.” Officials indicated that the department is not required to issue new rules, and the company “does not have the right to sue the regulator.”
In a new petition, representatives of the platform indicated that the Commission had already decided to reject its request for new rules, while its previous appeal was still valid.
“The words and actions of the SEC and its chairman leave no doubt about the plans of the agency. Enforcement action against Coinbase suggests that the Commission considers securities laws to be clear and workable in relation to digital assets and that no further rulemaking is required.” the document says.
The Exchange’s position for the Third Circuit Court of Appeals is 23 pages long.
The document is issued in the Mandamus format – an order to an official or other person to perform actions that he is obliged by law. Used in “exceptional circumstances”. Coinbase intends to seek a concrete response from the Commission regarding the development of rules for cryptocurrencies.
Earlier, the head of the exchange, Brian Armstrong, said that the SEC had gone on a “crusade” against the digital asset industry.
Recall that in May, the US Chamber of Commerce supported Coinbase and accused the regulator of “deliberately creating a dangerous and uncertain environment” for cryptocurrency companies in the country.
Later, the trading platform launched a TV campaign to lobby the industry.