Coinbase accuses the U.S. Securities and Exchange Commission (SEC) of deliberately ignoring all requests to establish clear regulations for the cryptocurrency market.
Coinbase’s offensive against the SEC
Representatives of the Coinbase exchange, decided not to wait any longer for action from the Securities and Exchange Commission (SEC). On Monday, May 22, they decisively attacked the institution, filing a motion in federal court to force the agency to respond to their demand for clear and precise rules governing cryptocurrencies. Coinbase had already filed a “petition for rulemaking” with the SEC last July, asking for the creation and adoption of a legal framework for securities based on digital assets. In addition, the exchange demanded answers to 50 specific questions to provide “clarity and certainty in the regulation of digital assets.”
Unfortunately, this petition has still not been answered by the SEC. What’s more, SEC Chairman Gary Gensler claimed at a Congressional hearing in March that “regulations are already in place” and are sufficient for cryptocurrencies to be effectively covered by securities regulation.
The SEC’s ignorance has reached a limit
“The SEC has no intention of engaging in such regulation in the foreseeable future, and this decision may not be reviewable indefinitely unless the Court grants Coinbase’s petition for mandamus,” the company said in its filing.
A mandamus order, also known as an executive order, is a lawful means of compelling a government official or public institution to perform a specific duty to which it is legally obligated.
In Coinbase’s efforts to seek regulatory clarity and accountability from the SEC, the exchange is showing its position as a tenacious defender of innovation and trust in the digital asset market. As one company representative said: “Our fight for a mandamus order is an expression of our determination to ensure a fair and transparent framework for the development of cryptocurrencies. It’s not just our cause, but the cause of the entire industry.”
Coinbase fights for the welfare of the entire industry
With this, Coinbase firmly expresses its dissatisfaction with the SEC’s actions, highlighting the contradiction between the tardiness of rulemaking and the simultaneous pursuit of intensive enforcement. This situation is a serious obstacle to the development of the digital asset sector and leads to ambiguity, as well as uncertainty for investors. As one exchange representative noted: “Our question is simple – why isn’t the SEC taking action to ensure clear regulations while at the same time conducting a prosecutorial enforcement campaign? This soi contradicts our desire for a fair and transparent market for digital assets.”