Paul Grewal, the Chief Legal Officer for Coinbase, has shared the update that the crypto venture has filed a narrow action in the federal court, seeking more clarity from the US Securities & Exchange Commission.
The development aligns with the mission of Coinbase, wherein the crypto venture aims to empower people across the world. Coinbase has adopted the approach to boost the adoption and utility of Cryptocurrency. However, going by the reviews of Coinbase, it is noted that work is already underway to introduce innovative products for the community. It, therefore, becomes eminent for Coinbase to work closely with the SEC.
Per the announcement, the SEC only has to respond to the petition with a yes or a no for Coinbase to convey to its community what it can engage with. The petition dates back to July 2022, asking the agency to use its rulemaking process for the crypto industry to have some guidance.
A similar tone has been echoed by more than 1,700 entities and individuals. They, too, seek clarity from the SEC. This is important because the SEC continues taking action against crypto ventures without offering a lot of clarity.
Coinbase, for one, has highlighted that the SEC is legally obligated to clarify the issues brought up by crypto ventures under the Administrative Procedure Act, also known as the APA. The Act basically requires the SEC to respond within a reasonable time.
Assuming the SEC responds No to the request, then Coinbase will have the right to move to court and challenge the response while making a statement in favor of requiring it to have rulemaking. Going to court will also give the agency a formal setting to explain why it did not respond.
Coinbase, in the announcement, has said that the SEC seems to have made up its mind to deny the petition. Paul has based this on the grounds of public statements and activities demonstrated by the regulatory agency. Coinbase had to go ahead and file the narrow action only because there was nothing public from their side.
Paul has highlighted that Coibase is merely asking the SEC to respond through the narrow action in federal court. It does not have any intention of deciding how they should respond. To reiterate, the SEC is legally obligated to provide clarity to Coinbase and other associated crypto ventures.
Rulemaking is a necessity, for it offers clarity to crypto ventures about what products and services they can offer. This further helps the community to know which product and service they can engage with.
The blog post says that the step to seek clarity is a bit unusual since nothing has been made public yet. Saying that regulatory clarity is overdue for the industry, Paul has said that rulemaking is a critical step to give the public notice about valid products and services.
Coinbase has assured the SEC that it will cooperate with all the dialogues by being available to them and all other regulators.
Coinbase, according to Paul’s statement, has claimed the filing of the narrow action as an important part of a multi-year and continual plea to the leaders of the US.