Crypto exchange Coinbase Global Inc submitted a new court filing in an ongoing lawsuit with the SEC, telling the court that its petition for a response about new digital asset regulation was still needed.
Specifically, the court action seeks a specific answer from the SEC to a previous request for new rules governing digital assets. Coinbase highlighted that the SEC is “talking out of both sides of its mouth, and is wrong at each end”, citing public statements from SEC Chair Gary Gensler.
Arguments Raised by Coinbase
In the filing, Coinbase reiterated that the Securities and Exchange Commission cites no intentions to consider Coinbase Global Inc’s request for new rules in the near future. The central argument of Coinbase’s rulemaking petition is that present crypto regulations are inadequate.
Coinbase also argued that the regulator has proven its intention to continue its enforcement campaign against the crypto business on the very themes mentioned in Coinbase’s petition. Markedly, Coinbase made the statement while referring to a recent “Wells notice” regarding some of its digital asset offerings, which indicates an ongoing inquiry.
“These actions presuppose that the agency considers the securities laws clear and functional when applied to digital assets and that additional rulemaking is unnecessary,” says Coinbase.
Furthermore, Coinbase claimed that the SEC’s enforcement actions show that it is not examining the petition, and accused the regulator of neglecting past petitions from the crypto industry for years.
Coinbase Files a Mandamus Petition
Accordingly, Coinbase has filed a mandamus petition against the SEC, claiming that the regulator has not conducted the rulemaking proposed by the exchange. According to the details of the lawsuit, Coinbase is contesting actions taken by the SEC and wants a higher court to intervene and compel the SEC to act differently.
Therefore, Coinbase is requesting that the court should retain jurisdiction to oversee the SEC’s progress toward a remedy and urge the Commission to make periodic updates.
Defense Raised by the SEC
The SEC blames Coinbase for the agency’s delay in releasing new crypto rules, noting Coinbase Global Inc’s efforts to enhance its original regulation petition.
Additionally, the SEC claims that its enforcement efforts justified its delay because they may generate evidence valuable in the Commission’s review of the problems presented in Coinbase Global Inc’s petition.
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