• Coinbase has accused the SEC of not acting towards creating crypto rules and has filed a writ of mandamus for the courts to order the SEC to change its stance.
• The SEC maintains that there are already regulations for crypto – they fall under securities law.
• Coinbase believes that the SEC is purposefully dragging its heels on creating formal rules and regulations rather than sticking to a process of “regulation by enforcement”, while Gary Gensler from the SEC states that “The regulations actually already exist, sir. They’re called securities regulations”.
Coinbase Accuses SEC of Unfair Practices
In a writ of mandamus, Coinbase has accused the U.S. Securities and Exchange Commission (SEC) of not acting towards creating crypto rules and is looking for the courts to order them to change their stance.
SEC Maintains Regulations Already Exist
The SEC maintains that there are already regulations in place for cryptocurrencies – they fall under securities law. Gary Gensler from the SEC stated that “The regulations actually already exist, sir. They’re called securities regulations” at a House Appropriations Subcommittee on Financial Services and General Government meeting in March 2021.
Coinbase Seeks Clarity on Regulation Mandate
Coinbase has repeatedly sought clarity on the SEC’s mandate to create a framework for crypto regulation with their July 2020 petition for rulemaking which asked them to propose and adopt digital asset securities rules.
Coinbase Condemns Lack Of Rulemaking By The SEC
In their latest court filing, Coinbase condemned the agency as „the SEC Chair continues to state publicly that there will be no rulemaking“. Coinbase feels this writ of mandamus is warranted due to three arguments – The SEC Chair continues to state publicly that there will be no rulemaking; The SEC’s enforcement actions confirm that it is not considering Coinbase’s petition; The SEC has ignored other crypto industry petitions for years – as they believe that the agency is purposefully dragging its heels on creating formal rules and regulations rather than sticking to a process of “regulation by enforcement”.
Crypto Industry Battle Peaks With Coinbase Championing Affected Parties
The battle between the U.S.’s crypto industry and regulators is starting to peak with major exchange Coinbase emerging as its champion against unfair practices from authorities such as those alleged by them against the US Securities & Exchange Commission (SEC).
As cryptocurrency adoption rises globally, these issues must be resolved soon in order for progress in this sector can continue uninterruptedly .