Coinbase, the US crypto giant, has been in a legal battle with the Securities and Exchange Commission (SEC) over the issue of regulation. The company asked the SEC in July 2022 whether it would allow the industry to be regulated using existing frameworks. However, the SEC refrained from offering specific public responses.
The Latest Development
The Third Circuit Court of Appeals has now ordered the SEC to respond to Coinbase’s mandamus petition within ten days. This comes after Coinbase filed a narrow action in federal court to compel the securities regulator to respond yes or no. The court also granted Coinbase the right to file a reply within seven days of the SEC’s response.
SEC’s Enforcement Actions
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. This has led to many firms looking to move their operations to friendlier jurisdictions.
Coinbase’s chief legal officer, Paul Grewal, has commented that the SEC has already made up its mind to deny Coinbase’s petition based on its public statements and enforcement activity in the crypto industry. However, the SEC has not yet shared its decision publicly. Coinbase’s legal action simply asks the court to ask the SEC to share its decision.
Amidst the ongoing tribulations with the SEC, Coinbase launched a Bermuda-based marketplace for non-US institutional users. The exchange will initially offer Bitcoin and Ethereum perpetual futures, with trades settled in the USDC stablecoin.