Coinbase and SEC : US regulator has 10 days to respond to complaint

The US regulator SEC has 10 days to respond to Coinbase’s complaint that calls for clear rules to follow for the crypto sector.

Indeed, following the legal complaint filed by Coinbase which demands the US regulator SEC clear rules to follow in the crypto sector, Paul Grewal, legal director of the crypto exchange, said that the SEC has been ordered to respond to Coinbase within 10 days.

Coinbase Vs SEC, reminder of the facts

As a reminder, Coinbase received a Wells Notice from the SEC, warning it of possible enforcement action due to an alleged violation of securities laws.

While the SEC is generally known for suing companies for regulatory violations, Coinbase decided to take the lead in filing a complaint against the SEC. This surprising move follows a petition Coinbase sent last summer asking the SEC to clarify the rules governing the crypto-industry, without receiving a response.

Coinbase thus blames the SEC for not clarifying the rules and not responding to their petition. In a statement, Coinbase’s general counsel said that the company decided to sue the SEC for official clarification of its position, as the SEC had already decided to reject their petition without publicly communicating it. While this action may seem unusual, it is necessary to ensure that the SEC shares its decision transparently with the public.

The answer in a few days!

Indeed, following the lawsuit filed by Coinbase, Paul Grewal, legal director of the crypto exchange, said that the SEC has been ordered to respond to Coinbase within ten days.

This is very positive news for Coinbase and the entire crypto industry, which is eagerly awaiting answers to a 50-question petition sent by the crypto exchange to the SEC in July 2022, which has remained unanswered.

A crypto industry that is waiting to know the exact position of the Securities and Exchange Commission (SEC) on many issues, such as the status of the cryptocurrency Ethereum (ETH) in order to know whether it is considered a security or a commodity.

A question that Gary Gensler, chairman of the SEC, was unable to answer during his hearing before a committee of the U.S. Congress.

By suing the US regulator SEC, Coinbase is also taking the lead in order to avoid being perhaps sued in turn by this regulatory authority that has already sued many crypto companies such as Beaxy, Bittrex, Kraken, or Nexo.