Circuit

<p><strong>The ongoing battle between the SEC and the crypto industry might take an interesting turn depending on the SEC’s response.</strong></p>
<h2 style="text-align: center;" id="complaint-against-sec">Complaint Against SEC</h2>
<p>Coinbase, the biggest cryptocurrency exchange in the US, has <a href="https://twitter.com/iampaulgrewal/status/1666234163110748160" target="_blank" rel="noopener">filed a complaint</a> against the Securities and Exchange Commission (SEC) to push for clear rules in the crypto industry. They want the SEC to <a href="https://walletinvestor.com/magazine/u-s-court-orders-sec-to-respond-to-coinbase-complaint-within-10-days" target="_blank" rel="noopener">publicly share their stance on regulations for securities</a> offered and traded using digital methods. The court has now ordered the SEC to respond within a week.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Earlier tonight the Third Circuit issued a short order in Coinbase’s mandamus action today. The court noted the SEC’s suit against us this morning and asked the SEC whether that means the SEC has decided to deny our pending petition for rulemaking. The SEC has 7 days to respond. <a href="https://t.co/8QXXoHJ07Z">pic.twitter.com/8QXXoHJ07Z</a></p>
<p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1666234163110748160?ref_src=twsrc%5Etfw">June 7, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="sec-changes-its-mind-on-8220-digital-assets-8221">SEC Changes Its Mind on &#8220;Digital Assets&#8221;</h2>
<p>The SEC recently reversed its decision to define &#8220;digital assets&#8221; in a hedge fund rule. Initially, they included the definition in a proposal but removed it in the final rule. The SEC stated that they are still considering the term and not adopting it as part of the rule at this time. This lack of clarity from the SEC continues to hamper the regulation of digital assets.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">My statement on the SEC suing Coinbase, inc. <a href="https://t.co/5KNEM0IPSV">https://t.co/5KNEM0IPSV</a> <a href="https://t.co/EgRIxrIcjj">pic.twitter.com/EgRIxrIcjj</a></p>
<p>— Senator Cynthia Lummis (@SenLummis) <a href="https://twitter.com/SenLummis/status/1666181240167317507?ref_src=twsrc%5Etfw">June 6, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="possible-implications">Possible Implications</h2>
<p>If Coinbase succeeds in its case against the SEC, it could bring regulatory clarity to the trading of digital crypto assets. Other cryptocurrency companies and exchanges may also seek clarity from the SEC. On the other hand, the SEC&#8217;s removal of &#8220;digital assets&#8221; from the final rule indicates uncertainty in defining cryptocurrencies.</p>
<h2 style="text-align: center;" id="us-court-orders-sec-to-respond-to-coinbase-8217-s-petition">US Court Orders SEC to Respond to Coinbase&#8217;s Petition</h2>
<p>A US judge has instructed the SEC to respond to Coinbase&#8217;s rulemaking petition or explain why they shouldn&#8217;t. Coinbase had filed a challenge in April, seeking a response to its petition for formal rulemaking in the digital assets sector. The SEC must clarify its position within seven days, including the reasons for their decision or a timeline for reaching a decision.</p>
<h2 style="text-align: center;" id="rules-before-enforcement">Rules Before Enforcement</h2>
<p>Coinbase&#8217;s Chief Legal Officer, Paul Grewal, stated that rules should come before enforcement actions, which is why they filed the petition in the first place. Grewal believes that the SEC&#8217;s decision to sue Coinbase suggests that they have already denied their petition for rulemaking.<br />
The SEC must also explain why the court should not oversee the case and why Coinbase should not receive regular updates on rulemaking, as requested.</p>
<blockquote class="twitter-tweet">
<p dir="ltr" lang="en">Reminder:</p>
<p>When the US government sells seized crypto assets, they use Coinbase.</p>
<p>According to the SEC, the US government is using an illegal unregistered securities exchange&#8230;</p>
<p>— Adam Cochran (adamscochran.eth) (@adamscochran) <a href="https://twitter.com/adamscochran/status/1666080192446763008?ref_src=twsrc%5Etfw">June 6, 2023</a></p></blockquote>
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<h2 style="text-align: center;" id="conclusion">Conclusion</h2>
<p>Coinbase&#8217;s fight for clear rules from the SEC highlights the need for proper regulation in the crypto industry. The court&#8217;s order for the SEC to respond brings hope for greater transparency and clarity in digital asset regulations.</p>

Coinbase Wants Clear Rules from the SEC

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