SNEAK PEEK
- The SEC is employing delay tactics in response to Coinbase’s lawsuit.
- Coinbase seeks a court order for SEC to clarify its stance on rulemaking for digital assets.
- The SEC argues it has the authority to take an extended period to deliberate on the matter.
The United States Securities and Exchange Commission (SEC) has swiftly responded to the lawsuit filed by Coinbase, the prominent cryptocurrency exchange, employing a classic delay strategy. In what comes as little surprise to industry observers, the regulatory body appears to be employing tactics to prolong the legal proceedings.
1/ Breaking: SEC responds to @Coinbase suit
And, no surprise, the SEC is playing a classic delay strategy.
Here’s what you should know…
— MetaLawMan (@MetaLawMan) May 16, 2023
As a result, Coinbase has adopted a proactive approach by pursuing a court order. As mentioned by legal expert MetaLawMan, Coinbase compels the regulatory agency to provide a definite answer regarding its willingness to engage in rulemaking concerning digital assets.
In response to Coinbase’s court order, the SEC argues that it has yet to decide whether to grant Coinbase’s petition for rulemaking. This has left Coinbase and the broader cryptocurrency community uncertain. The regulatory body further asserts its authority to take an extended period to deliberate on the matter, potentially spanning years.
3/ The SEC argues:
1. It hasn’t decided whether to grant Coinbase’s petition for rulemaking yet.
2. It’s fully within its rights to wait years (literally) to decide whether to grant the petition.
3. And it intends to keep right on suing crypto companies without any new rules.
— MetaLawMan (@MetaLawMan) May 16, 2023
In support of its position, the SEC has referenced relevant case law where courts have previously denied relief to petitioners. This is evident when government agencies take an extended period to act on petitions. Moreover, the regulatory body contends that this slow progression of the Coinbase petition aligns with accepted practices within government operations.
On the same note, the SEC intends to continue filing lawsuits against cryptocurrency companies without implementing new rules. As MetaLawMan suggests, the SEC could successfully employ this delay tactic. He further references the long-awaited Ripple decision, a stark reminder of the critical importance of timely regulatory clarity.
