The Third Circuit has finally reacted to the case against the US Securities and Exchange Commission (SEC) for failing to provide clear regulations, according to Coinbase‘s Chief Legal Officer, Paul Grewal, on Thursday.
SEC Has to Respond to Coinbase’s Complaints within 10 Days
On May 3, Grewal tweeted that a court in the Third Circuit had issued a text-only order telling the financial watchdog to draft a response to the exchange’s mandamus complaint. After receiving notice of the exchange’s legal action, the SEC has 10 days to react.
But the exchange, the petitioner, has seven days from the filing date to submit a reply to the commission’s contention. The court’s careful investigation of this matter was praised by Grewal.
Tensions Between SEC and the Exchange Continue
The largest cryptocurrency exchange in the country, Coinbase, filed a lawsuit against the SEC in April, asking the court to issue an order requiring the agency to publicly state its opinion on a petition filed a few months earlier. In the petition, it was urged that legislation governing the trading and offering of securities through digital channels be developed openly and transparently.
In recent months, regulatory monitoring of the exchange has increased. In March, the SEC was issued a Well Notice about certain of the exchange’s goods. But it made it clear that it didn’t list securities.
Coinbase’s International Exchange
For institutional traders outside of the US, the exchange has recently created an international exchange. Analysts assume that the action was prompted by mounting regulatory pressure on the company’s domestic operations.
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