- More importantly, it is still undecided here whether they will do so at all
- The SEC also remembered to stress that Coinbase must comply with current law
- And there is no way for Coinbase to escape liability with a petition for rulemaking
The SEC was again ordered by a court last week to respond to Coinbase’s request for rulemaking. The exchange sent a petition to the regulator demanding clarification of the agency’s powers last year. Only now has the SEC deigned to respond.
Yesterday, June 13, the SEC said it had not yet decided whether it would consider the petition at all. At the same time here stressed that the lawsuit against the platform does not contradict “any” decision on the rulemaking.
If the Commission gives a recommendation on the treatment of the exchange, then within 120 days (4 months). Until the SEC decides to propose a new regulatory framework, Coinbase must comply with the existing. This is clearly an opaque hint that the exchange cannot avoid potential consequences.
“Regardless of whether the Commission decides to engage in rulemaking, which Coinbase has been advocating for, both the exchange and other counterparties remain bound by existing law,” the agency stressed.
Coinbase General Counsel Paul Grewal commented on the situation, noting that the Commission contradicts itself. Its position is that Chairman Gensler’s statements are a response to the petition as such, but that the regulator had previously asked that his statements not be identified with the agency’s global policy.