Coinbase Depository Could Get an SEC Answer Soon

According to Coinbase’s chief legal officer Paul Grewal, the US Third Circuit Court has given the US Securities and Exchange Commission (SEC) 10 days to respond to Coinbase’s injunction petition.

The court ordered the SEC to respond in a text-only directive, after which Coinbase has seven days to respond.

Coinbase deposit marks nearly 10 months since the initial request

On April 24, the exchange filed a “narrow suit” asking the SEC to respond to its petition. The agency reportedly ignored Coinbase’s July 2022 petition asking if the SEC would set new rules for cryptocurrency.

More than 1,700 entities have commented on the petition for legal clarity.

Paul Grewal at the time argued the need for clear laws tailored to the new technology.

“Enforcement action based on unapplicable securities law is not the answer.”

In an interview with the Bankless podcast, Grewal He said That the SEC has not Set any rules for cryptocurrency, revealed that there were no requests for comment. SEC Chairman Gary Gensler sets the rulemaking agenda at the start of each year.

Earlier this year, the Securities and Exchange Commission issued Coinbase with a Wells notice arguing that it lists unregistered securities. The exchange recently obtained a license from the Bermuda Monetary Authority.

This approval sparked speculation that the SEC’s aggression would cause Coinbase to move its business elsewhere.

Coinbase competitor Kraken has shut down its institutional stacking service for its US clients after an enforcement action from the Securities and Exchange Commission (SEC). After the Kraken saga, SEC Commissioner Hester Pearce criticized the agency’s lack of standard registration procedures.

O’Leary says Coinbase made the wrong move

Social media response to Grewal’s tweet was largely negative, with most respondents saying the courts would aid and abet the delay to accommodate the SEC.

The trader named Cryptonym, who has 3,162 followers, He said That the SEC will request an extension, followed by Coinbase requesting an extension to respond.

Data analyst Paul Wong argue that the SEC may respond in a timely manner given its poor track record of meeting deadlines in the SEC vs. Ripple case.

Bitcoin investor Kevin O’Leary has argued that Coinbase’s court filing will not advance US crypto legislation.

For the latest Bitcoin (BTC) analysis from BeInCrypto, click here.


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