Coinbase can’t force the SEC to write new rules, SEC argues in new report
The SEC has filed a new form arguing that Coinbase’s petition to develop a new regulatory system for cryptocurrencies from scratch should be denied. “The Commission’s determination that the rulemaking sought by Coinbase is currently unreasonable is reasonable and reasonably explained,” the SEC said in a case filed with the U.S. Court of Appeals for the Third Circuit.
The SEC’s filing asserts that it is unreasonable to call existing digital asset regulation “unworkable” and states that “the Commission reasonably denied the petition, citing several proposed rules and initiatives it is pursuing that would require an entirely new regime.” Denied. Resolves questions regarding application. existing “A framework for crypto-asset securities,” it is summarized.
The report contains several strong denials of Coinbase’s petition. For example, he scoffed at Coinbase’s suggestion that courts are having difficulty applying existing law to digital asset cases, arguing that current law is sufficient to allow such cases to proceed and that “…the courts presiding over those cases are providing objective justice.” “I agreed with the judgment.” “This is an assessment that cannot be squared with Coinbase’s protest that these enforcement actions are an unauthorized ‘power grab’ and an act of ‘self-aggrandizement’ by the institution,” it states briefly.
The SEC argues that it was right not to take the time to write rules for cryptocurrency assets, and that Coinbase was wrong to force them to write regulations anyway. The SEC notes that “absent a congressional mandate or threat to human health and safety (neither of which exist here), courts rarely overturn a denial of an agency’s rulemaking petition, and no one has ever done so in similar circumstances.” “I wrote. Before I say there isn’t enough economic momentum for a rulemaking petition, let me briefly explain.
Paul Grewal, Coinbase’s top lawyer, responded to the I did. But in addition to denying their duty to explain themselves, they are rehashing the fallacy that registration is ‘executable,'” Grewal wrote. “We are confident that the courts will find this to be what it is.”
Edited: Edited to clarify that the filing is from the SEC and not a court ruling.
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