The US Securities and Exchange Commission has responded again to Coinbase’s call for crypto clarity with more procrastination and feet-dragging. Meanwhile, the agency continues to target digital asset exchanges for failing to register as securities brokers.
On November 21, the SEC filed an update to the US Court of Appeals for the Third Circuit on the Coinbase proposal on crypto rulemaking.
SEC’s Slow Response Raises Concerns
However, no progress has been made since the regulator has postponed any decisions or actions until December 15.
Coinbase chief legal officer Paul Grewal shared the letter, stating, “You can read it for yourself, but I’m happy to translate: “Still dragging our feet, please give us yet more unlimited time to actually do something.”
Coinbase filed its rulemaking petition back in July 2022. It urged the regulator to set clear guidelines for the crypto industry instead of constantly issuing lawsuits for noncompliance in what is still a grey area.
Coinbase pushed the issue several times with court letters requesting action. However, they have fallen on deaf ears as the firm (and industry) continues to get stonewalled by the SEC.
Sixteen months later, there has still been no action from the SEC, which continues to procrastinate and push back the dates.
Learn more: Binance Review 2023: Is It the Right Crypto Exchange for You?
Meanwhile, Gary Gensler and his team of crypto cops have wasted no time taking legal action against crypto companies. The Kraken exchange was the latest to be sued this week when the regulator accused it of operating an unlicensed securities exchange.
On November 21, Cameron Winklevoss said he was “Looking forward to watching Kraken and
Coinbase delivers more embarrassing losses to the SEC. Keep on fighting the good fight!”
Bloomberg ETF analyst James Seyffart commented:
“This complaint against Kraken feels like the same thing as the Coinbase suit to me. Notably, here’s another list of digital assets that the SEC is claiming to be securities.”
Coinbase Reaction to CZ Resignation
On November 22, Coinbase CEO Brian Armstrong commented on the resignation of Changpeng Zhao as Binance CEO and his massive fine.
“Today’s news reinforces that doing it the hard way was the right decision,” he said. The commence were regarding Coinbase’s efforts to remain compliant in the United States.
However, this has not stopped the SEC from suing the firm earlier this year in its war on crypto.
Armstrong said that we now have an opportunity to start a new chapter for this industry.
“We took a lot of arrows operating here in the U.S. due to the lack of regulatory clarity, and my hope is that today’s news serves as a catalyst to finally achieve that.”
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