After Coinbase submitted its rulemaking petition, the Securities and Exchange Commission (SEC) requested additional time to provide a response, prompting a comment from the crypto exchange.
Coinbase has strongly criticized the U.S. securities regulator for its failure to address the inquiries posed in the U.S. Court of Appeals during their ongoing legal dispute.
In a letter submitted to the Court on June 17, legal representatives of the cryptocurrency exchange criticized the Securities Exchange Commission (SEC) for persistently evading Coinbase's request for rulemaking. The petition urges the SEC to create a regulatory structure for digital assets.
The letter was written in reply to the SEC's recent request for a 120-day extension to respond to Coinbase's rulemaking petition, which was submitted on June 13.
Coinbase has stated that the Securities and Exchange Commission (SEC) seems hesitant to provide the Court with timely updates regarding its decision. Coinbase alleges that the SEC even shows resistance when ordered to inform the Court about the progress it has made.
The company asserts that the crypto industry is still burdened by the consequences of the Securities and Exchange Commission's lack of communication, prolonged delays, and enforcement measures. According to them, Gary Gensler, the chair of the SEC, is persistently heading towards causing irreparable harm to both a public company in the United States and the entire industry.
Coinbase's chief legal officer, Paul Grewal, expressed his views on June 17 regarding the government's response to a direct question from a federal court. In a series of tweets, he remarked that it is uncommon for the government to disregard such a query.
Grewal expressed his desire for the court to issue a writ of mandamus, which is a legal directive to a government official, instructing them to carry out their official responsibilities in accordance with the law. This request comes after the SEC rejected Coinbase's petition.
Coinbase has proposed to the court that a time limit of 60 days or fewer be established, commencing from June 13, which is the date when the SEC made its request.
On June 6, Coinbase found itself embroiled in a legal battle as the SEC filed a lawsuit against the cryptocurrency exchange. The SEC's allegations centered around Coinbase's alleged violation of several securities regulations, particularly in relation to its offering of cryptocurrencies that the regulatory body deemed to be unregistered securities.
