Coinbase appeals SEC rulemaking petition denial as promised

Coinbase is constant its efforts to make sure sufficient laws on cryptocurrency used as securities. After america Securities and Change Fee (SEC) denied Coinbase’s petition for rulemaking on cryptocurrency on Dec. 15, the crypto alternate 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 Courtroom of Appeals ordered the SEC to file the report of its determination by Jan. 24, 2024.

In its attraction, Coinbase documented the prolonged course of that was necessary to compel the SEC to answer its petition. It referred to 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 towards Coinbase and others that exceeds its statutory authority, flouts the APA [Administrative Procedure Act] and elementary ideas 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 current laws have been “unworkable” and state that the company has discretion over the precedence and timing of regulation. The denial was criticized by the crypto community.

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SEC Chair Gary Gensler released a statement that intently adopted the official denial.

As we speak the SEC denied Coinbase’s petition for guidelines for crypto. After 18 months of silence, we went to courtroom 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 a wide range of actions in assist of the cryptocurrency business, including political donations, lobbying and public actions. The SEC sued Coinbase for securities violations in June.

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