Coinbase’s chief legal officer, Paul Grewal, has updated the situation on the U.S. Securities and Exchange Commission’s (SEC) response to the company’s repeated calls for regulatory clarity. In a recent filing, Grewal reported that the regulator has launched an outright attack on the digital asset industry this year and “repeated the fallacy that they haven’t made any decision on new crypto rules.” The filing stated that the regulator wants at least four months to make a recommendation. “Commission staff anticipate being able to make a recommendation to the Commission regarding Coinbase’s rulemaking petition within the next 120 days.”
Background on Coinbase’s Petition
Coinbase sent a petition in July 2022 requesting guidance and more clarity on regulation for the new asset class. However, the SEC has ignored it, and it continues to crack down on enforcement actions. Grewal added that the SEC refused to commit to any deadline despite the court’s explicit order. Moreover, he said, “They ignore the clear statements of the Chair that confirm they have no intent to issue new rules and instead conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision.”
Backlash Against the SEC
There has been a great deal of backlash against the SEC following its outright attacks on the digital asset industry. Lawmakers in the House of Representatives filed a new bill on June 12 intended to remove Gary Gensler as the Chair of the SEC and restructure the financial regulator. The move was led by Senator Warren Davidson and House Majority Whip Tom Emmer. “U.S. capital markets must be protected from a tyrannical Chairman, including the current one,” said Davidson.
Crypto Market Status
Crypto markets have not reacted to any news this week and remain in consolidation. Total market capitalization is up just under a percentage point on the day to reach $1.1 trillion. Bitcoin (BTC) prices have topped $26,000 during the Wednesday morning Asian trading session, but it remains range-bound. There has been no move on Ethereum prices, which remain at $1,744 at the time of writing. Binance Coin (BNB) is the only asset to have recovered, with a 7.6% gain on the day, as the court urges Binance.US and the SEC to reach an agreement and avoid an asset freeze.
In summary, the SEC has requested 120 days to make a recommendation on Coinbase’s rulemaking petition, which asked for guidance and more clarity on regulation for the new asset class. The regulator has been attacked by lawmakers for its outright attacks on the digital asset industry. The crypto market remains in consolidation, with Bitcoin and Ethereum prices remaining range-bound. Binance Coin (BNB) is the only asset to have recovered, with a 7.6% gain on the day, as the court urges Binance.US and the SEC to reach an agreement and avoid an asset freeze.