The U.S. Securities and Exchange Commission (SEC) has given responses to Coinbase's petition for formal rulemaking in the digital assets sector on the court, claiming that it has no obligation to issue new regulations and Coinbase has no standing to sue it.
In a filing to the court, the SEC's lawyers said, "neither the securities laws nor the Administrative Procedure Act impose on the Securities and Exchange Commission an obligation to issue the broad new regulations regarding 'digital assets' Coinbase has requested."
The petition was filed in July 2022. SEC said that Coinbase expected to get a response too soon, while rulemaking may take years. The commission has taken up to 5 or 10 years to respond to petitions in other areas in the past. SEC also emphasized that rules for crypto assets already existed, and the commission had taken enforcement actions concerning crypto assets. In addition, the SEC has not yet made any decision on the petition, and will continue to consider the filing.
Regarding the SEC's response, Paul Grewal, Chief Legal Officer at Coinbase, said, "the SEC's response reinforces Coinbase's longstanding concern that our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time, and it is likely to continue changing its mind along the way."
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Policy and Regulation