Coinbase is seeking to gain an advantage in its ongoing legal battle with the United States Securities and Exchange Commission (SEC).
The crypto exchange responded to the commission’s request for an additional 120 days to respond to its regulatory petition by filing a strong response with the United States Court of Appeals for the Third Circuit.
Paul Grewal, Chief Legal Officer of Coinbase, announced the filing, stressing that the crypto exchange cannot wait until next week’s deadline to address the SEC’s indecision in response to the previous court order.
According to Grewal, it is highly unusual for the government to ignore a direct federal court investigation.
Coinbase CLO asks court to grant mandamus
On June 13, the SEC sent a letter to the court asking for an additional 120 days to respond to Coinbase’s regulatory request. The regulator said it has yet to decide how to proceed.
According to Coinbase, the petition was originally filed in the summer of 2022, and the SEC deliberately evades questions regarding regulatory frameworks and how the agency oversees the crypto market in the United States. The lack of regulatory clarity surrounding cryptocurrencies is having a significant impact on both the crypto industry and investors, especially given the agency’s increasing enforcement actions.
Grewal argued that the court should grant mandamus to Coinbase quickly, as the SEC clarified that it would not accept petitions from the exchange. The exchange asked the court to compel the SEC to file a response within 60 days.
Lawmakers release stablecoin bill
SEC Chairman Gary Gensler has always believed that most crypto assets should be classified as securities. However, the jurisdictional question regarding whether the SEC or the Commodity Futures Trading Commission (CFTC) should regulate crypto needs to be resolved, leading to further confusion.
Meanwhile, the U.S. House Financial Services Committee has taken steps to address these concerns by releasing a draft stablecoin invoice. The committee aims to bring much-needed clarity to the regulation of crypto in the United States in the coming weeks. This bill will resolve regulatory ambiguities and clarify whether the SEC or CFTC has jurisdiction to regulate the crypto industry.