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Coinbase is continuing its efforts to ensure adequate legislation on cryptocurrency used as securities. After the United States Securities and Exchange Commission denied Coinbase\u2019s petition for rulemaking on cryptocurrency on Dec. 15, the crypto exchange appealed the decision on the same day.<\/p>\n
Coinbase chief legal officer Paul Grewal promised immediate action as soon as the SEC\u2019s denial became known. On Dec. 18, the U.S. Third District Court of Appeals ordered the SEC to file the record of its decision by Jan. 24, 2024. <\/p>\n
In its appeal, Coinbase documented the lengthy process that was necessary to compel the SEC to respond to its petition. It called the SEC\u2019s denial of its petition \u201carbitrary and capricious, an abuse of discretion, and contrary to law, in violation of the Administrative Procedure Act.\u201d In addition:<\/p>\n
\u201cThe Commission\u2019s refusal to engage in rulemaking, even while it continues a campaign of regulation by enforcement against Coinbase and others that exceeds its statutory authority, flouts the APA [Administrative Procedure Act] and fundamental principles of fairness it embodies.\u201d<\/p><\/blockquote>\n
The SEC\u2019s denial letter faulted the Coinbase petition for lacking \u201ctext or the substance of any proposed rule\u201d as required for petitioning. It went on to disagree with the petition\u2019s claim that existing regulations were \u201cunworkable\u201d and state that the agency has discretion over the priority and timing of regulation. The denial was criticized by the crypto community.<\/p>\n
Related: Coinbase CEO says leaving US \u2018not even in the realm of possibility right now\u2019 \u2014 Report<\/em><\/strong><\/p>\n
SEC Chair Gary Gensler released a statement that closely followed the official denial.<\/p>\n
\nToday the SEC denied Coinbase\u2019s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC\u2019s abdication of its duty. \u2b07\ufe0f pic.twitter.com\/tFjiW53eF7<\/a><\/p>\n