The US Securities Exchange Commission (SEC) has officially responded to Coinbase’s petition for crypto regulation. In the SEC’s response, it was stated that it could take years to set any rules and that enforcement actions will continue. The institution argued that it should not be forced to set rules for the crypto industry.
In documents submitted to the court on May 15, the SEC argued that Coinbase was under no obligation to meet its requirements outlined in its petition. It was noted that the company called for rulemaking in an unreasonably short time. The institution asked the court to dismiss Coinbase’s mandamus lawsuit. The Mandamus case refers to judicial decisions made to compel institutions to do their job. The SEC also stated that the exchange did not seek assistance.
Paul Grewal, Coinbase’s Chief Legal Officer, said it may be the first time the SEC has expressed its views on establishing rules for the crypto industry. Twitter posting Grewal stated that there is still much to be clarified. Grewal added that the SEC does not have the clarity for the crypto sector. SEC Chairman Gary Gensler also stated at the Financial Markets Conference that the rules for crypto have already been published and are sufficient.
Coinbase filed a lawsuit over the SEC’s application of securities rules to cryptocurrencies. The exchange wanted the SEC to be clear on how securities laws would apply to the crypto industry. The institution sent a Well notification to Coinbase in March. In the SEC’s accusation, it was stated that Coinbase listed assets that were considered securities. Coinbase, on the other hand, denied these claims.