Circuit

David

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<p class="is-style-lead">Coinbase’s chief legal officer, Paul Grewal, recently spotlighted the SEC’s apparent evasiveness on crypto regulation-related questions from a federal court.&nbsp;</p> 
<p>In the uncertain landscape of cryptocurrency regulation, another significant clash has taken center stage.&nbsp;</p> 
<p>Paul Grewal, Chief Legal Officer of <a href="https://crypto.news/exchanges/coinbase/">Coinbase</a>, has publicized an intriguing development via Twitter. The Third Circuit has decided to retain jurisdiction over Coinbase’s challenge to the SEC’s inaction on the crypto platform’s request for basic rules for the crypto industry.&nbsp;</p> 
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  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC's inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that… <a href="https://t.co/wQu52UuCoU" target="_blank">pic.twitter.com/wQu52UuCoU</a></p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1671271479743483904?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 20, 2023</a>
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<p>Coinbase’s <a href="https://crypto.news/coinbase-demands-sec-respond-to-rulemaking-petition/" data-type="URL" data-id="https://crypto.news/coinbase-demands-sec-respond-to-rulemaking-petition/">petition</a> for a writ of Mandamus against the SEC is at the core of this legal standoff. The goal of this petition is to urge the SEC to take action to provide clarity on cryptocurrency regulation.&nbsp;</p> 
<p>Despite not yet ruling on Coinbase’s petition, the court has chosen to maintain jurisdiction over the case and now requires the SEC to provide an update on its progress by October 11, 2023.&nbsp;</p> 
<p> You might also like: <a href="https://crypto.news/sec-vs-coinbase-and-new-lawsuit-history-of-the-years-long-battle/"> SEC vs Coinbase and new lawsuit: history of the years-long battle </a> </p> 
<h2 class="wp-block-heading" id="crypto-community-reacts">Crypto community reacts</h2> 
<p>The court’s decision has stirred diverse reactions within the crypto community. Ripple’s Chief Technology Officer, Davie Schwartz, expressed triumph and disappointment.&nbsp;</p> 
<p>He welcomed the court’s insistence on the SEC disclosing their ruling timetable but was let down by the four-month grace period the SEC has been given to provide a progress update.</p> 
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   <p lang="en" dir="ltr">This is kind of a rollercoaster. The court insisted the SEC tell it when the commission was going to rule on Coinbase's requset, yay. But then let the SEC get away with taking four months just to update the court on just their progress towards getting a staff recommendation.</p>— David "JoelKatz" Schwartz (@JoelKatz) <a href="https://twitter.com/JoelKatz/status/1671305972193853440?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 20, 2023</a>
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<p>Similarly, Bill Morgan, a lawyer and digital asset enthusiast, highlighted the court’s ruling as a victory for Coinbase.&nbsp;</p> 
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   <p lang="en" dir="ltr">Definitely a victory for <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">@coinbase</a>. Another example of the SEC not getting the easy wins in crypto related legal proceedings it was previously achieving. <a href="https://t.co/1Wsk5IXIxM" target="_blank">https://t.co/1Wsk5IXIxM</a></p>— bill morgan (@Belisarius2020) <a href="https://twitter.com/Belisarius2020/status/1671315598285111296?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 21, 2023</a>
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<h2 class="wp-block-heading" id="strong-grewal-called-out-sec-s-evasive-tactics-strong"><strong>Grewal called out SEC’s evasive tactics</strong></h2> 
<p>Meanwhile, earlier in June, Grewal accused the SEC of defying direct questions from a federal court.&nbsp;</p> 
<p>According to him, the SEC’s failure to provide a proper response meant that the court should grant Mandamus, or an order compelling the SEC to do something legally obligated under public duty.&nbsp;</p> 
<p>He mentioned the unusualness of a government body like the SEC defying a direct question from a federal court.</p> 
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   <p lang="en" dir="ltr">We couldn't wait until our deadline next week to address the SEC's response to the June 6 order from the Third Circuit. It is unusual for the government to defy a direct question from a federal court. But the SEC’s evasive response goes further, as we set out today. 1/5 <a href="https://t.co/ssULmUpzi2" target="_blank">pic.twitter.com/ssULmUpzi2</a></p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1669880095908184070?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 17, 2023</a>
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<p>Grewal further noted that the SEC’s evasive responses further justified the grant of Mandamus, as he believed the SEC had decided not to grant Coinbase’s rulemaking petition and was actively harming the industry.&nbsp;</p> 
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   <p lang="en" dir="ltr">The Court should grant mandamus now because the Commission has decided not to grant Coinbase’s rulemaking petition and Is actively harming the industry. 2/5 <a href="https://t.co/O40x9qEBK6" target="_blank">pic.twitter.com/O40x9qEBK6</a></p>— paulgrewal.eth (@iampaulgrewal) <a href="https://twitter.com/iampaulgrewal/status/1669880097875304453?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">June 17, 2023</a>
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<p>The SEC had stated that there was “no merit” to Coinbase’s motion, a response that Grewal labeled as evidence of further delay being “futile.”</p> 
<h2 class="wp-block-heading" id="the-road-ahead">The road ahead</h2> 
<p>As the narrative unfolds, market participants and enthusiasts keenly watch this legal standoff.&nbsp; The hope is for a more transparent and well-defined regulatory framework that promotes innovation while ensuring investor protection.&nbsp;</p> 
<p>The saga of Coinbase’s legal battle against the SEC has just begun, and its outcome might be a significant turning point in the US cryptocurrency industry.</p> 
<p> Read more: <a href="https://crypto.news/bitcoin-market-cap-reclaims-crypto-dominance-with-50-share/"> Bitcoin market cap reclaims crypto dominance with 50% share </a> </p>

Court ruling fuels Coinbase’s regulatory quest against SEC

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