Coinbase, the leading cryptocurrency platform, has urged a federal court to expedite their mandamus petition amidst rising tensions with the U.S. Securities and Exchange Commission (SEC). Coinbase’s Chief Legal Officer, Paul Grewal, highlighted the importance of this matter in a recent series of tweets.
SEC’s Defiance Sparks Concern
On June 6, a significant order from the Third Circuit prompted the SEC to respond. However, the government’s somewhat evasive reply has raised concerns for Coinbase.
“It is unusual for the government to defy a direct question from a federal court. But the SEC’s evasive response goes further, as we set out today,” Grewal wrote in a tweet.
In light of the SEC’s reaction, Grewal called for the court to grant a mandamus. He argued that the Commission’s refusal to accede to Coinbase’s rulemaking petition has detrimental impacts on the entire crypto industry.
“The Court should grant mandamus now because the Commission has decided not to grant Coinbase’s rulemaking petition and is actively harming the industry,” Grewal added.
Grewal emphasized the Commission’s lack of clarity on timelines and unwillingness to take action on Coinbase’s petition, interpreting this as a signal that further delay would be futile. He urged the court to demand a clear report of action from the SEC within 60 days and act swiftly on the mandamus petition if no action is taken by that time.
A Pattern of Rejection
According to Grewal, the SEC Chair has reiterated that there will be no rules made regarding digital assets, as the ‘rules and regulations are already clear’ and have been ‘for years.’
“This statement confirms that the SEC will not engage in rulemaking on these issues and a writ of mandamus is required. The SEC still offers no straight answers,” Grewal lamented.
Grewal’s comments reflect an ongoing frustration with the SEC’s evasiveness and lack of explanation or timeline for future action. This situation continues to compound the challenges faced by Coinbase and the broader cryptocurrency industry.