Court Gives SEC 10 Days to Respond to Coinbase’s Complaint
- The U.S. Third Circuit Court of Appeals has filed a text-only order against the securities regulator, giving it 10 days to respond to Coinbase’s complaint.
- The crypto exchange filed a lawsuit against the SEC last week, requesting a response to a rulemaking petition it had filed back in July 2022.
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A U.S. court has ordered that the Securities and Exchange Commission (SEC) has 10 days to respond to the complaint made by cryptocurrency exchange Coinbase last month, Coinbase’s chief legal officer Paul Grewal said on 4 May.
According to the announcement, the U.S. Third Circuit Court of Appeals filed a text-only order against the SEC, giving it 10 days to respond to Coinbase’s writ of mandamus — a court order addressed to a government official, requesting them to fulfill their official duties properly — after which the exchange will have 7 days to file its own reply.
The court order was issued in response to Coinbase’s lawsuit against the SEC from last week, in which the exchange requested that the regulator is compelled to respond to a petition submitted by Coinbase back in July 2022. In its petition, the exchange requested that the SEC provide clearer regulatory guidelines for the crypto industry, as well as answer 50 specific questions about the regulatory treatment of certain digital assets.
The lawsuit was filed almost a month after Coinbase revealed it had received a Wells notice from the SEC — a letter warning a company that enforcement actions might be taken — which alleged the exchange’s services may be violating securities law. Coinbase noted that it had asked the SEC to specifically identify which parts of its business were violating securities law, but they declined to do so.
- Initially launched in the U.S., U.K., Germany, and Ireland, Coinbase One offers its subscribers zero-fee trading, improved staking rewards, 24/7 customer support, and more.
- The $29.99 per month service also offers additional benefits through Coinbase’s partnerships, and will be rolled out to 31 additional countries in the coming months.
Coinbase CEO Brian Armstrong speaking at TechCrunch Disrupt SF 2018. Steve Jennings/Getty Images for TechCrunch
- These documents are seen as central in Ripple’s battle against the SEC, which in 2020 accused the company of selling its XRP token without registering it as a security.
- The documents in question are internal emails, text messages, and expert reports that followed Hinman’s 2018 speech, in which he said ETH and BTC were not securities.
- The Economic and Financial Affairs Council of the EU, which is comprised of finance ministers of all 27 member states, unanimously approved the MiCA crypto regulation.
- The EU’s finance ministers also also gave their consent to new measures that will allow tax authorities to collect data on individuals’ cryptocurrency holdings.