Coinbase's Chief Legal Officer claims SEC is lying about it not making any new rules regarding crypto regulation.
In an unfolding drama around cryptocurrency regulations, the United States Securities and Exchange Commission (SEC) has requested an additional four months to address Coinbase's plea for regulatory clarity around cryptocurrencies.
This recent turn of events occurred when the SEC submitted a letter to the US Court of Appeals for the Third Circuit on June 13th, expressing their need for more time.
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The SEC's letter responds to the court's June 6th order, in which the regulator was instructed to clarify its stance on Coinbase's rulemaking request.
Despite this clear directive, the SEC has indicated that they haven't yet decided on the appropriate course of action in response to Coinbase's petition, deeming it to be without merit. They anticipate that "within the next 120 days," they should be able to formulate a recommendation on Coinbase's request.
Reacting to the SEC's plea for additional time, Paul Grewal, Coinbase's Chief Legal Officer, shared his disappointment with his large Twitter following. He accused the SEC of perpetuating the "fallacy" that they are yet to make a definitive decision on new regulations, even as they continue to ignore SEC Chair Gary Gensler's stance that no new rules need to be issued.
In Grewal's perspective, the SEC deliberately conflates Gensler's statements about a lack of new regulations with a final decision. Despite the court's direct order, the SEC appears hesitant to commit to a specific deadline, Grewal pointed out, voicing his frustration.
Coincidentally, the court's directive to the SEC was issued on the same day the regulator sued Coinbase. The suit alleges that Coinbase operated an unregistered securities exchange and offered unregistered securities. This legal tussle forms the backdrop for the ongoing debate around regulatory clarity in the ever-evolving world of cryptocurrencies.
