Coinbase, a prominent cryptocurrency exchange, has criticized the United States Securities and Exchange Commission (SEC) for its failure to address questions posed in the U.S. Court of Appeals during their ongoing legal dispute. In a letter filed on June 17, Coinbase’s lawyers expressed their frustration with the SEC’s avoidance of Coinbase’s rulemaking petition, which urges the SEC to establish a regulatory framework for digital assets.
The letter from Coinbase accused the SEC of evading direct answers and merely reiterating talking points when pressed by the Court to address inconsistencies between its litigation stance and its actions and statements elsewhere. The response was prompted by the SEC’s request on June 13 for an additional 120 days to respond to Coinbase’s rulemaking petition.
Coinbase claimed that the SEC is hesitant to provide updates to the Court regarding its decision and even objects to being ordered to do so. The company argued that the SEC’s silence, along with the prolonged delays and enforcement actions, continues to impede the cryptocurrency industry. Furthermore, Coinbase’s Chief Legal Officer, Paul Grewal, expressed via Twitter on June 17 that it is uncommon for the government to disregard a direct question from a federal court. He expressed hope that the court would grant a writ of mandamus, compelling the SEC to fulfill its official duties as per the law, especially since the SEC rejected Coinbase’s petition.
In addition to their ongoing legal battle, Coinbase is requesting that the court set a deadline of 60 days or less, beginning from June 13, the date of the SEC’s request. Meanwhile, the SEC recently sued Coinbase on June 6, alleging that the trading platform violated various securities regulations, primarily by offering cryptocurrencies that the regulator deems to be unregistered securities.