The U.S. Securities and Exchange Commission (SEC);has requested;the court to refuse the demands in crypto exchange Coinbase's petition that aims to force the agency to create a clear framework for digital assets.
;In the filing, the U.S. regulator said the regulatory changes take time to consider, adding that there is no specific deadline for it to complete the necessary amendments.;
- The SEC's request came nearly 20 days after Coinbase;filed its petition;in the U.S. Court of Appeals for the Third Circuit.
- The company's latest petition mainly aims to compel the;SEC;to respond to a previous petition for rulemaking it submitted last year, underlining that the agency did not provide any response for months.;
- The rulemaking petition urged the SEC to explain how;securities;laws apply to cryptocurrencies and create a new legal framework for the crypto market.
- In its latest request, the SEC stated that Coinbase was not harmed because the commission did not respond to the petition and defined the exchange's demand as baseless.
- On his official Twitter account, Coinbase chief legal officer Paul Grewal has pointed out that the SEC's filing marked the first time the agency formally explained its views on whether it should create rules for the crypto industry in court.;
- The tension between Coinbase and the SEC started rising in March when the popular crypto exchange disclosed that;it was served;a legal notice by the agency.
- The SEC mainly claims that Coinbase could violate the securities laws through its exchange and staking services, while the popular crypto exchange complains about the lack of regulatory clarity in the U.S. that it holds the agency responsible for.
- SEC Chair Gary Gensler has been famous for his strict regulatory approach toward crypto assets over the years and has reiterated his belief that all crypto assets other than Bitcoin (BTC) are securities several times.;
- Gensler has also repeatedly stated that existing rules are clear, and crypto firms just reject complying with them, so there is no need for new crypto-specific regulations.
- Over the last several months, many crypto exchanges, including Coinbase, Kraken, Bittrex, and Binance, came under increased scrutiny by the SEC.