SEC Shrugs Off Coinbase Rulemaking Petition Amid Legal Battle

The SEC-Coinbase legal tussle is heating up. The securities authority has refused to set a deadline, despite a Coinbase rulemaking petition on the matter.

The United States Securities and Exchange Commission (SEC) filed a letter on June 13 in response to a court order published earlier in the month, stating there was no merit to a Coinbase request to set a deadline or clarify its position. The U.S. Court of Appeals had asked the SEC to approve or deny a Coinbase petition made last year that would have it clarify rules.

SEC-Coinbase Legal Battle Equally Significant to Binance

The news will further rile the crypto market up, with much of its support in favor of regulation and clear rules on what is permissible. The SEC did state that it may make a decision within four months.

The SEC stated the following on its position,

“The Commission has not decided what action to take on that petition in whole or in part—which is entirely reasonable given the breadth of the rulemaking petition and the fact that it was filed just months ago and supplemented by Coinbase more recently…while Coinbase might prefer faster action by the Commission, the Commission’s ongoing consideration is reasonable under the circumstances.”

Coinbase’s Chief Legal Officer Paul Grewal posted his thoughts on the letter on Twitter, saying that the agency has repeated the fallacy that it has not made any decision on new crypto rules. He also said that it ignored clear statements from Gary Gensler that there is no intent to issue rules.

Coinbase Invited by Hong Kong Securities Commission

As the legal complications in the United States heat up, Coinbase has been invited by Hong Kong’s Securities and Futures Commission (SFC) to set up shop in the region. The latter started taking in applications for crypto trading on June 1 as it seeks to become a crypto hub.

Coinbase executives have said that they are excited to expand more substantially into other markets. Coinbase CEO Brian Armstrong has also said in the past that the exchange may have to relocate out of the U.S. because of the unfriendly regulatory environment.

Armstrong Offers Multiple Updates

Meanwhile, there have been several statements from Coinbase and its executives on matters related to SEC-Coinbase developments. Armstrong said that the SEC has stated that everything other than Bitcoin is a security, irking many in the industry.

The CEO has also said that the exchange would not shut down its staking service. However, he showed some optimism, saying that the U.S. would eventually find the right outcome for crypto.