Coinbase Seeks SEC Mandamus to Clarify Crypto Exchange Regulations
• Coinbase’s Chief Legal Officer Paul Grewal has accused the U.S. Securities and Exchange Commission (SEC) of defying questions from a federal court regarding regulatory clarity for crypto exchanges.
• In April, Coinbase filed a motion to compel the SEC to respond to their request for guidance on the matter.
• Grewal has requested that the court issue mandamus, or an order to do something legally obligated under public duty, as the SEC is actively harming the industry by not responding properly.
Coinbase Calls Out SEC
The chief legal officer of Coinbase, Paul Grewal, recently called out the United States Securities and Exchange Commission (SEC) for defying questions from a federal court relating to regulatory clarity for cryptocurrency exchanges.
Coinbase Requests Regulatory Clarity
In April 2021, Coinbase filed a motion to compel the SEC into responding to their request for guidance on cryptocurrency regulations. This was followed by an order from The U.S Court of Appeals for Third Circuit asking the regulator to reply within seven days.
SEC Response Unsatisfactory
The response from the SEC was unsatisfactory according to Grewal who believes that because they failed to formulate a proper response, mandamus should be issued – an order for an entity do something legally obligated under public duty – as they are actively harming industries in their delays in replying appropriately.
SEC Refuses To Specify Time Needed
The SEC’s refusal to specify how much time would be needed before they can act on Coinbase’s petition indicates that further delay is futile according to Grewal who suggested that at minimum, the court should order them to report back in no more than 60 days and decide on mandamus if nothing had been done by then.
Conclusion
> Grewal has made it clear that he believes further delay is counter productive and will only hurt businesses operating within this emerging industry which needs greater clarity around its regulations before it can mature fully.
