Coinbase Condemns SEC's 'Evasive Response' to Court Mandate
The US Securities and Exchange Commission was recently heavily criticized by a Coinbase executive after it provided rather evasive responses to questions from the US federal court.
The exchange’s Chief Legal Officer, Paul Grewal, commented on the regulator’s behavior in a series of tweets.
According to Grewal, the exchange could not wait for its deadline this week to address the SEC’s response to the June 6 order from the Third Circuit.
He pointed out that:
"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."
According to the Coinbase filing, the exchange is now requesting “mandamus,” referring to a court order issued by a higher court to a government agency. The order commands the agency to perform a specific duty or action, legally obligating said agency to perform it.
Simply put, Coinbase wants a federal judge to force the regulator to create rules and standards for the crypto industry.
This was the topic of Coinbase’s rulemaking petition from last year, which the SEC decided to completely ignore.
Grewal said that the exchange would be more understanding if the Commission announced that it needed additional time to act on the petition.
However, the SEC never acknowledged it and refused to say how much time it needs, prompting the exchange to conclude that the regulator is not doing anything about it.
With that being the case, any further delay is futile, according to Grewal.
Coinbase is now going on an offensive, asking that the court orders the SEC to report on its activities.
He stressed that the exchange is not interested in an “anticipated” staff “recommendation,” but a proper report on what is being done to properly consider
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