Coinbase CLO On January 30, Paul Grewal took issue with a plain legal document that the U.S. Securities and Exchange Commission (SEC) had made.
Below is the administrative record of @SECGov‘s decision rejecting our petition for digital assets rules. See for yourself whether it’s even close to complete or sufficient to justify their decision. Our brief is due 3/11; the SEC brief is due 4/10, and our reply is due 5/1. 1/3
— paulgrewal.eth (@iampaulgrewal) January 30, 2024
On December 15, 2023, the SEC denied the motion, arguing with Coinbase’s assertion that the current securities laws pertaining to cryptocurrencies are insufficient.
Filed on January 24, the SEC’s most recent submission is a compilation of the papers that preceded its December ruling. Notices of meetings between the SEC and Coinbase, as well as remarks from those outside the agency, are the main contents of the papers that are linked. The SEC’s position on the subject is not explained in any document type, and none of them are provided with any additional commentary from the SEC in the current filing.
Arguably, the only documents that provide light on the SEC’s position on the subject are its first acknowledgement of the petition request and its final denial letter, both of which are included in the most recent filing.
Coinbase is still requesting a review.
Even though Coinbase’s rulemaking petition was denied by the SEC in December, Coinbase then requested that the court reconsider the motion.
In his X post today, Grewal outlined the schedule for the forthcoming court processes. He stated that the SEC’s brief is due on April 10, Coinbase’s answer is due on May 1, and Coinbase’s brief is due on March 11. Coinbase “appreciate[s] the Third Circuit’s consideration,” he continued.
The reason Coinbase is making this request is because in June 2023, the SEC accused the business of securities offenses. Coinbase has discussed the two scenarios in connection to one another, despite the fact that they are distinct cases. Coinbase said in a public blog post in March 2023 that it had tried to request clear regulations through its rulemaking petition but had “got legal threats instead” in response to the SEC’s claims.
It’s unclear how the rulemaking petition’s decision may affect the securities violation lawsuit. Clearer regulations, however, may lessen the possibility that Coinbase and other businesses would face further SEC enforcement in the future.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.