• The US court has ordered the Securities and Exchange Commission to respond to Coinbase’s complaint within 10 days.
• Coinbase originally petitioned the SEC in July 2022 for clarity on whether existing frameworks would be used to regulate the crypto industry.
• The SEC issued a Wells notice to Coinbase, signaling its intention to conduct enforcement actions against the exchange.
SEC Ordered 10 Days to File Response to Coinbase’s Petition
The US court has ordered the Securities and Exchange Commission (SEC) to respond within 10 days to Coinbase’s complaint about clarification on whether existing frameworks can be used for regulating the crypto industry. The original petition dates back from July 2022 when Coinbase asked for this information from the SEC, however, it failed to provide any public response over nine months. Consequently, Coinbase filed a narrow action in federal court requesting a yes or no answer from the agency.
Coinbase Chief Legal Officer Announces Court Order
Coinbase Chief Legal Officer Paul Grewal announced that the Third Circuit Court of Appeals issued a text-only order directing the SEC to file an answer within ten days regarding their petition. Moreover, they are granted permission by the court to file a reply within seven days of receiving an answer from SEC.
Wells Notice Issued By SEC
Amidst increasing tension between Coinbase and SEC due multiple enforcement actions and warnings against crypto firms by regulator, including US giant Coinbase, a Wells notice was issued by SEC which is an indicator of potential enforcement activities against them. This led them take legal action with federal courts for compulsory response from agency about their inquiry.
Court Orders Deadline For Response
At last after over nine months waiting period, court finally issued an order setting a deadline of ten days for response submission and granting permission of reply filing after seven days of receipt of same by agency.
With this order approval process will move forward as now authority has been given by law on both parties i-e SEC has been instructed by federal court to submit response in given timeline while Coinbase is allowed reply after getting answer from former one