Coinbase Challenges SEC's Rulemaking Denial
Coinbase has strongly opposed the SEC's decision by submitting its final brief in the Third Circuit. The pivotal issue revolves around a brief statement in the SEC's order that simply expressed disagreement with Coinbase's assertion that the current regulations are impractical for cryptocurrency firms.
Lack of Reasoning
Coinbase contends that the SEC's vague and cursory response is sufficient grounds to dismiss the entire case. The SEC's tendency to extend its authority beyond clear congressional boundaries and its failure to outline precise regulations have been criticized by Coinbase.
Coinbase's chief legal officer, Paul Grewal, condemned the SEC's allegations as baseless. In the official filing, Coinbase highlighted a paradoxical scenario where the SEC demands adherence based on an excessively expansive interpretation of its powers, initiates aggressive legal actions against non-compliant crypto entities, and yet refrains from establishing the necessary guidelines for compliance.
Industry Threat
The filing by Coinbase suggests a systematic endeavor by the SEC to undermine the crypto sector through unattainable demands and punitive measures against non-conforming enterprises. The company's brief further accuses the SEC of signaling its resolve to stifle the crypto market. Coinbase maintains that the SEC's responses in the lawsuit indicate oppressive strategies, utilizing inconsistent legal rationales to prolong its offensive against the industry.
Legal Action Necessity
Coinbase insists that only a judicial directive commanding the SEC to initiate rulemaking procedures will put an end to its arbitrary maneuvers. Despite repeated pleas from the industry, the SEC has obstinately avoided furnishing the essential regulatory framework, deliberately creating compliance hurdles with federal laws.
To thwart the SEC's multifaceted assault on the industry, Coinbase stresses the imperative for a court order compelling the SEC to commence rulemaking procedures. The filing of the rulemaking petition by Coinbase nearly two years ago was sidelined by the SEC's passive stance. It required a mandamus petition, judicial mandates, and the looming threat of an extraordinary writ to compel the SEC to issue a dismissive order.
