Coinbase plans new lawsuit, two SEC commissioners dissent in wake of SEC’s petition denial

Coinbase intends to initiate ineligible action against the SEC, accusing the regulatory assemblage of shirking its responsibilities, according to the exchange’s main ineligible officer, Paul Grewal.

The determination follows the SEC’s rejection of Coinbase’s petition for establishing circumstantial regulatory rules for cryptocurrency transactions, a petition that Coinbase had been pushing for since July 2022.

Abdication of duty

Grewal took to societal media to dependable his disapproval of the SEC’s decision, emphasizing the agelong play of inaction from the watchdog and the request for regulatory clarity successful the cryptocurrency industry. His tweet highlighted Coinbase’s vexation with the regulator implicit what it perceives arsenic the “abdication of its duty.”

The halfway of Coinbase’s statement is the ambiguity and complexity of the existent ineligible model surrounding cryptocurrencies. Grewal pointed retired contradictions successful the SEC’s stance implicit time, including statements made by the SEC Chair successful Congressional grounds aft Coinbase was permitted to database successful 2021.

He besides highlighted the information that two SEC commissioners besides disagree with the regulator’s stance toward the Coinbase petition.

Dissent within

The SEC’s rejection provided 3 reasons for the denial. First, it stated that the existing laws and regulations already use to the crypto securities markets it stands. Second, the committee stated that the timing for specified rulemaking projected by Coinbase was inappropriate arsenic the SEC is presently soliciting comments connected rules applicable to crypto. Lastly, it noted that the discretion of rulemaking lies with the bureau itself.

Despite these reasons, SEC Commissioners Hester Peirce and Mark Uyeda released a joint statement criticizing the decision. They acknowledged the points made by Gensler but suggested that the issues raised successful Coinbase’s petition deserved much consideration.

The 2 Commissioners projected that exploration of these issues should see nationalist roundtables, conception releases, and requests for remark to perceive from a wide scope of marketplace participants and funny parties.

The station Coinbase plans caller lawsuit, 2 SEC commissioners dissent successful aftermath of SEC’s petition denial appeared archetypal connected CryptoSlate.