SEC failed to respond to Coinbase's petition over rulemaking for over nine months.
A US court has ordered the Securities and Exchange Commission to respond to Coinbase’s complaint about clarity on whether the securities regulator would allow the industry to be regulated using existing frameworks.
The latest development emerges amidst escalating tensions between the SEC and Coinbase, with the former ramping up enforcement actions and warnings against crypto firms, including the US crypto giant.
SEC’s 10-Day Deadline
The original petition dates back to July 2022, when Coinbase asked if the SEC would propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods. The agency, however, refrained from offering specific public responses.
Grewal had previously commented,
“From the SEC’s public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision.”
Since January, the SEC has been aggressively targeting crypto platforms such as Bittrex, Gemini, and lender Genesis, as well as several individual actors accused of manipulating crypto assets, including Tron’s Justin Sun and disgraced Terraform Labs founder Do Kwon. As a result, many firms are now looking to move their operations to friendlier jurisdictions.
Global Push
The announcement of the new venture follows regulatory approval from the Bermuda Monetary Authority (BMA).