- Regulator given a week deadline
- If rejected, commission must clearly explain reasons
The U.S. Court of Appeals ordered the SEC to respond to Coinbase’s petition on crypto industry rulemaking. They must do so within 7 days.
Note that the SEC has several options on how to respond to the petition. The first is to reject Coinbase’s request. But then you need to explain in detail the reasons for this decision. And the second option is to take the petition for consideration and specify a timeline for when the commission will come to a decision.
Remind that in their petition Coinbase asked the authorities to introduce clear rules regarding cryptocurrencies. They filed last year, but never got a response.. A major cryptocurrency exchange is demanding a detailed description of the mechanisms by which authorities evaluate cryptocurrency companies.
The commission recently said it could take years to regulate the market.. And added that enforcement action against cryptocurrency companies will continue.
On May 15, the U.S. SEC officially refused to comply with Coinbase. They asked the court to dismiss the exchange’s application. Next came a series of hearings and appeals. The decision has now been made by the United States Court of Appeals for the Third Circuit. Whether the commission will file a new appeal remains to be seen.
The crypto world will be closely watching the new round of war between the SEC and Coinbase. Especially now that the commission has filed a lawsuit against the crypto exchange. Coinbase has now been “taken under the radar” by regulators in 11 states.
Crypto-world will be watching closely.