The SEC has filed a new form arguing that Coinbase’s petition ordering the agency to create a new regulatory regime for cryptocurrencies “from the ground up” should be denied. “The Commission’s determination that the rulemaking Coinbase is seeking is currently unreasonable is reasonable and reasonably explained,” the SEC said in its lawsuit in the U.S. Court of Appeals for the Third Circuit.
The SEC’s filing argues that it is unreasonable to call existing digital asset regulations “unworkable,” stating that “the Commission reasonably denied the application and the numerous regulations it was pursuing” are unreasonable. “We need a completely new system,” he said.Address questions regarding the application of existing Framework for Crypto Asset Securities”, Overview state.
The brief includes several strong rejections of Coinbase’s petition. For example, he briefly scoffed at Coinbase’s suggestion that courts have a hard time applying current law to digital asset lawsuits, saying that current law is sufficient to pursue these cases and that “… “The competent court has agreed to an objective judicial decision.” “This assessment cannot square with Coinbase’s protestations that these enforcement actions constitute an unauthorized ‘power grab’ and an act of ‘self-aggrandizement’ by a government agency,” the brief states. .
The SEC argues that it was right not to take the time to create rules for crypto assets, and that Coinbase was wrong to try to force the creation of regulations anyway. “Courts rarely reverse an agency’s denial of a rulemaking petition in the absence of an order of Congress or a threat to human health and safety (neither of which exists here); No one has overturned it,” the SEC wrote. We outlined this before stating that there is also insufficient economic impetus for the rulemaking petition.
Paul Grewal, Coinbase’s top lawyer, responded to the filing with the following statement: Post to X. ”[The SEC’s] Basic answer: “No additional explanation is needed to understand the Commission’s policy decisions.” But other than denying accountability, the mistaken idea that registration as is is ‘viable’ Grewal wrote, adding, “I am confident the courts will see this for what it is.”
Edit: Corrected to clarify that the filing is from the SEC and not a court ruling.
Disclaimer: The Block is an independent media outlet that delivers news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in: Other companies In the crypto space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful, and timely information about the cryptocurrency industry. Current financial disclosure information is as follows:
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
