The U.S. Securities and Exchange Commission (SEC) has issued its formal response to the Third Circuit’s request regarding the ongoing legal dispute with Coinbase, a prominent cryptocurrency exchange.
The SEC’s extensive response reveals a continued reluctance to provide clarity on cryptocurrency regulation or commit to a specific timeline for rulemaking, despite the court’s explicit orders.
In its response, the SEC argues that Coinbase’s demand for immediate action is an “extraordinary request” and that it has not yet determined the appropriate course of action due to the extensive scope of Coinbase’s rulemaking petition.
The SEC also disregards explicit statements made by its chair, which indicate a lack of intention to issue new rules.
However, the SEC does provide an estimated timeline for further action. The commission’s counsel anticipates being able to make a recommendation regarding Coinbase’s rulemaking petition within the next 120 days. To keep the court informed, the SEC offers to provide a status report by October 11, 2023.
The SEC’s response is a disappointment to many in the cryptocurrency community, who have been calling for clarity and certainty from regulators for years.
The SEC’s reluctance to provide clear guidance on cryptocurrency regulation has created a climate of uncertainty and risk for both investors and businesses.
The outcome of the court’s response to the SEC’s recent assertions and proposed timeline will play a crucial role in shaping the future of cryptocurrency regulation in the United States.
If the court finds that the SEC has not taken adequate steps to address Coinbase‘s concerns, it could order the SEC to take further action. This could lead to the SEC issuing new rules or providing more clarity on how it intends to regulate cryptocurrencies.