Coinbase appeals SEC rulemaking petition denial as promised

Coinbase is constant its efforts to make sure sufficient laws on cryptocurrency used as securities. After the USA Securities and Change Fee (SEC) denied Coinbase’s petition for rulemaking on cryptocurrency on Dec. 15, the crypto trade appealed the choice on the identical day.

Coinbase chief authorized officer Paul Grewal promised rapid motion as quickly because the SEC’s denial turned identified. On Dec. 18, the U.S. Third District Court docket of Appeals ordered the SEC to file the document of its resolution by Jan. 24, 2024.

In its attraction, Coinbase documented the prolonged course of that was essential to compel the SEC to answer its petition. It known as the SEC’s denial of its petition “arbitrary and capricious, an abuse of discretion, and opposite to legislation, in violation of the Administrative Process Act.” As well as:

“The Fee’s refusal to have interaction in rulemaking, even whereas it continues a marketing campaign of regulation by enforcement in opposition to Coinbase and others that exceeds its statutory authority, flouts the APA [Administrative Procedure Act] and basic rules of equity it embodies.”

The SEC’s denial letter faulted the Coinbase petition for missing “textual content or the substance of any proposed rule” as required for petitioning. It went on to disagree with the petition’s declare that present rules have been “unworkable” and state that the company has discretion over the precedence and timing of regulation. The denial was criticized by the crypto group.

Associated: Coinbase CEO says leaving US ‘not even within the realm of risk proper now’ — Report

SEC Chair Gary Gensler launched an announcement that intently adopted the official denial.

Right this moment the SEC denied Coinbase’s petition for guidelines for crypto. After 18 months of silence, we went to court docket to get the response the legislation requires. With appreciation for the Third Circuit, later immediately we’ll once more search its assist by difficult the SEC’s abdication of its responsibility. ⬇️ pic.twitter.com/tFjiW53eF7

— paulgrewal.eth (@iampaulgrewal) December 15, 2023

San Francisco-based Coinbase has taken quite a lot of actions in help of the cryptocurrency trade, together with political donations, lobbying and public actions. The SEC sued Coinbase for securities violations in June.

Journal: Binance, Coinbase head to court docket, and the SEC labels 67 crypto-securities: Hodler’s Digest, June 4-10