In the ongoing case of the United States Securities and Exchange Commission (SEC) versus Coinbase, the firm is planning to seek more legal assistance and urge the court to force the SEC to provide clarity regarding crypto regulations. Reportedly, Coinbase’s strategy employs a writ to press the SEC into adopting clear regulations for cryptocurrencies.
The recent intent of Coinbase comes following the SEC’s denial of its request to provide a new regulatory framework for the crypto industry. After receiving a Wells Notice from the regulator for violating federal securities laws, the firm has tried various coping mechanisms which include being optimistic to being devastated and calling out the regulator.
Following that the firm went to court and filed a lawsuit requesting the court to compel the SEC to publicly disclose its stance on a petition submitted by Coinbase several months prior. However, the court’s interference did not make any difference to SEC’s stance and it continued to assert what it had said in the previous months.
Additionally, the SEC stated that “the securities laws do not obligate the Commission to adopt rules such as those proposed by Coinbase.” The SEC writes that its mandate is to maintain fair, orderly, and efficient markets.
While Coinbase is expected to issue a formal response to the SEC next week, the employees have continued to target the regulator and criticize its approach. In response to SEC’s denial, the Coinbase CLO expressed severe concerns about their response as they said lawmaking takes time.
The SEC confirmed that it is indeed working on rules but gave no definite timeline. While it could take years for a court decision on the mandamus petition, legal experts generally agree that Coinbase’s request may be premature.
Notably, SEC has been carrying an enforcement-oriented approach targeting various crypto firms. It has issued warnings and notices to several crypto exchanges accusing them of violating laws and some of these names include Paxos, Kraken, etc.
Meanwhile, the SEC is not the only issue that Coinbase is currently dealing with. As reported by Todayq News, another lawsuit against the company alleging that the top executive bench of the exchange sold stock using inside information and dodged massive losses. Reportedly, the top executive bench tried avoiding losses of over $1 billion with the help of inside information to sell stock within days of the platform’s public listing in 2021.