{"id":12736,"date":"2023-05-23T15:32:23","date_gmt":"2023-05-23T19:32:23","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/coinbase-asks-the-court-to-step-in-to-get-answers-on-its-rulemaking-petition\/"},"modified":"2023-05-23T15:32:24","modified_gmt":"2023-05-23T19:32:24","slug":"coinbase-asks-the-court-to-step-in-to-get-answers-on-its-rulemaking-petition","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=12736","title":{"rendered":"Coinbase Asks the Court To Step In To Get Answers on Its Rulemaking Petition"},"content":{"rendered":"
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Cryptocurrency exchange Coinbase called on a court to issue a \u201cwrit of mandamus\u201d telling the US Securities and Exchange Commission to respond to its rulemaking petition within seven days.<\/p>\n

A mandamus \u201cis warranted because the SEC has made up its mind to deny Coinbase\u2019s petition,\u201d the exchange said in a court filing on Monday.<\/p>\n

A mandamus is an order from a court to a government official ordering it to fulfill certain duties, according to Cornell University<\/u>.\u00a0\u00a0<\/p>\n

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Coinbase\u2019s request comes after it filed a petition with the SEC in July of last year, asking the agency to write rules explaining how securities laws apply to cryptocurrency.\u00a0<\/p>\n

The SEC asked a judge to reject Coinbase\u2019s rulemaking petition last week<\/u>, saying that it is not mandated to meet the requirements outlined by Coinbase.\u00a0<\/p>\n

Coinbase has since pushed back.\u00a0<\/p>\n

\u201cThis Court should issue a writ of mandamus instructing the SEC to respond to Coinbase\u2019s rulemaking petition within 7 days,\u201d Coinbase said on Monday. \u201cAlternatively, the Court should retain jurisdiction and order the SEC to explain its delay to date, state when it will respond, and provide progress reports to the Court.\u201d<\/p>\n

The relationship between the SEC and Coinbase has gotten rocky<\/u>.<\/p>\n

Back in March, the commission sent a \u201cWells notice\u201d to Coinbase, threatening the crypto exchange with legal actions regarding some of its listed digital assets, its staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet.\u00a0<\/p>\n

A Catch-22<\/h2>\n

SEC Chair Gary Gensler has repeatedly told crypto exchanges to register with the agency.<\/p>\n

\u201cBut the SEC refuses to promulgate rules that would enable the industry to know the SEC\u2019s standards for determining whether digital assets may be securities or provide a workable path to register when required,\u201d Coinbase said.\u00a0<\/p>\n

That makes for a Catch-22, the exchange said.\u00a0<\/p>\n

Coinbase also said the SEC has no intention of engaging in rulemaking, citing enforcement actions over the past year and its own Wells notice.<\/p>\n

\u201cThese actions presuppose that the agency believes the securities laws are clear and workable as applied to digital assets and that additional rulemaking is unnecessary,\u201d Coinbase said.<\/p>\n<\/p><\/div>\n