The legal battle between crypto exchange Coinbase and US securities regulator is getting intense.
Coinbase, a leading cryptocurrency exchange in the United States, has criticized the United States Securities and Exchange Commission (SEC) for the latter's lack of responsiveness in their ongoing court dispute.
The issue, ongoing since September 2022, revolves around Coinbase's petition to the SEC, requesting the establishment of a regulatory framework for digital assets.
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As documented in a letter submitted to the Court on June 17th, Coinbase's legal representatives criticized the SEC for its continued evasion of direct answers concerning the petition. The crypto exchange highlighted the disconnect between the SEC's position in litigation and its external actions and statements.
Addressing the SEC's failure to provide "straight answers," the letter from Coinbase raised questions about the regulator's previous request.
When ordered by this Court to address the stark inconsistency between its litigating position and its actions and statements elsewhere, the SEC still offers no straight answers and instead repeats its talking points.
The request, submitted on June 13th, sought an additional 120 days to respond to Coinbase's rulemaking petition. Coinbase asserted that the SEC appeared resistant to informing the Court about its decision-making progress.
Coinbase emphasized the ramifications of the SEC's stillness, asserting that the ongoing delays and enforcement actions negatively affect the crypto industry. The company also alleged that the SEC Chair, Gary Gensler, "continues to charge well down the path to irreparably damaging a US public company and an entire industry.”
On the same day, the letter was filed, Paul Grewal, Coinbase's chief legal officer, voiced his concern over the SEC's non-compliance. In a series of tweets, Grewal pointed out that it is uncommon for a federal court's direct question to be disregarded by the government.
Grewal expressed hope for the Court to issue a writ of Mandamus, a judicial mandate to a public official to complete their duties. This action is sought following the SEC's rejection of Coinbase's petition.
Coinbase's clash with the SEC extends beyond this case. The SEC initiated a separate lawsuit against Coinbase on June 6th. The regulator alleges that the crypto exchange violated various securities regulations.
The ongoing legal dispute underscores the tension between cryptocurrency firms and regulatory bodies regarding the clarity and enforcement of digital asset regulations.
