Coinbase, the US’s biggest cryptocurrency exchange by trading volume is dealing with the legal challenges launched by the Securities and Exchange Commission (SEC). Paul Grewal, Chief Legal Officer at Coinbase informed that they have filed a short response to the Third Circuit over the petition for rulemaking. However, the crypto exchange expresses gratitude for the court’s attention to the matter.
Coinbase asks for clarity
As per the response, Coinbase’s response highlights two key points. Firstly, it suggests that only a court order will prompt the US SEC to take definitive action. The response stressed the point that the Commission’s submission of another report reflects a reluctance to fully acknowledge Coinbase’s petition for rulemaking. This signals a very big need for court intervention.
Secondly, the response notes the timing of the US SEC’s latest action, which occurred shortly after the filing of a lawsuit against another crypto exchange, Payward, Inc. known as Kraken. Coinbase stated that this recent legal action, along with previous lawsuits is contradicting the commission’s purported need for additional time to make regulatory decisions. The crypto exchange asserted that the Commission’s course appears determined.
Coinbase urges the court to reject what it characterizes as the US SEC’s “empty gesture.” It emphasized the need for regulatory clarity and resolution on Coinbase’s longstanding petition for rulemaking.
It is important to note that, the response highlighted the ongoing tension between crypto platforms and regulatory bodies. Coinbase raised questions about the US SEC’s commitment to providing the industry with the clarity it seeks. However, the court’s upcoming decisions will likely have significant implications for Coinbase and the digital assets market.
In the latest developments, Binance CEO Changpeng Zhao resigned as he pleaded guilty to violating U.S. anti-money laundering laws in a landmark $4.3 billion settlement. It makes this settlement one of the largest corporate penalties in U.S. history. However, CZ Zhao will personally pay $50 million. This development follows a prolonged investigation into the world’s largest crypto exchange.
