Coinbase issues a final 30-day ultimatum demanding SEC’s response to its petition.

Coinbase Gives SEC 30-Day Ultimatum for Response to Petition

Author: Oluwapelumi Adejumo; Source: Be In Crypto; Translation: Ke Dong, LianGuai

Coinbase is ramping up its efforts to get a response from the Securities and Exchange Commission (SEC) regarding its petition for rulemaking. This move comes in the backdrop of several legal disputes between the two parties over the past year.

In a new attempt, Coinbase has formally requested an order requiring the SEC to respond to its rulemaking petition submitted in July 2022 within 30 days – with the exchange seeking a clear approval or denial of its petition.

Coinbase Issues Final 30-Day Ultimatum

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According to court documents dated October 13, 2023, Coinbase emphasizes that this final 30-day ultimatum is intended to compel an official response from the SEC. The company further states that if it does not force action, the commission may continue to employ evasion and delay tactics.

Coinbase writes, “The SEC and its officials have gone beyond the bounds of this process to effectively deny Coinbase’s petition.”

Coinbase’s Chief Legal Officer, Paul Grewal, describes the SEC’s response as lacking substantive information and sees it as merely bureaucratic procedure. Grewal states, “The SEC’s unenlightening ‘update’ is a bureaucratic exercise that confirms that there is no means, other than a court order, to make the agency take its obligations seriously.”

Meanwhile, the recent court filing marks another episode in the ongoing legal battle between Coinbase and the SEC. The two entities have filed multiple lawsuits against each other since last year, including regulatory allegations of Coinbase violating securities laws with its cryptocurrency products.

In response, Coinbase has been attempting to dismiss the case, citing a lack of regulatory clarity in the emerging industry.

SEC’s Underwhelming Response

On October 11, 2023, Grewal shared an update from the SEC, which indicated that the regulatory body claimed its staff had provided “recommendations” regarding Coinbase’s petition. The update from the regulatory body did not include further details on these recommendations.

Grewal, at the time, expressed that given the lawsuits brought by cryptocurrency-related companies, the regulatory body should have provided a response. He said:

“A formal, public response is still overdue. Considering their ongoing enforcement activity against cryptocurrency, the SEC should at least tell the court when it will decide. Coinbase’s petition asks the commission to clarify how securities laws apply to digital assets.”

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