The U.S. Securities and Exchange Commission (SEC) has formally responded to the ongoing dispute between the regulatory body and cryptocurrency exchange Coinbase.
However, the SEC’s response has left many unanswered questions, as it continues to avoid providing a clear stance on cryptocurrency regulation.
In defiance of the court’s orders, the SEC refuses to commit to a definitive timeline for rulemaking, deeming Coinbase’s demand for immediate action as an “extraordinary request.”
SEC’s Ambiguous Stance on Cryptocurrency Regulation
Despite explicit instructions from the Third Circuit, the SEC’s response indicates a reluctance to address the cryptocurrency regulation issue head-on.
The commission refrains from providing clear guidance or committing to a timeline for rulemaking. The SEC labels Coinbase’s demand for immediate action as extraordinary, citing the complexity and scope of Coinbase’s rulemaking petition as factors that necessitate further consideration.
Disregarding Chair’s Statements and Lack of Decision
Contradicting statements made by the SEC’s chair, the commission dismisses them as mere utterances and denies that they constitute a decision.
This unexpected twist adds to the ambiguity surrounding the SEC’s position on cryptocurrency regulation. By failing to clarify its stance, the SEC leaves the industry and stakeholders in a state of uncertainty.
Proposed Timeline and Status Report
In a somewhat surprising move, the SEC provides an estimated timeline for further action. The commission’s counsel suggests that a recommendation regarding Coinbase’s rulemaking petition could be made within the next 120 days.
To keep the court informed, the SEC offers to provide a status report by October 11, 2023. This timeline provides some hope for clarity in the near future, but the response fails to address the SEC’s intentions beyond the recommendation.
Coinbase’s rulemaking petition has placed significant pressure on the SEC to establish a clear and definitive stance on cryptocurrency regulation.
The lack of clarity from regulators has been a point of contention among cryptocurrency companies, investors, and regulators themselves.