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Crypto News: The ongoing clash between Coinbase, the premier cryptocurrency exchange, and the US Securities and Exchange Commission (SEC) has reached a new level of intensity as Coinbase filed a writ of mandamus against the regulatory body recently. This legal action follows months of disputes over the need for clear rules and guidelines for crypto businesses operating in the United States.
Coinbase Files Mandamus Petition
Coinbase’s decision to file the writ of mandamus comes shortly after the SEC stated that it was not in a hurry to respond to Coinbase’s calls for regulatory clarity, dismissing the claims as “baseless.” The writ of mandamus refers to a legal petition which compels a government agency to fulfill its statutory obligations.
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In its filing, Coinbase highlighted the SEC’s intent to continue its anti-crypto enforcement campaign against the industry — focusing on the very topics raised by Coinbase’s petition while disregarding the petition itself — similar to its approach with previous digital-asset-related rulemaking petitions.
Late last night Coinbase replied in the Third Circuit to the SEC’s arguments against our petition for a writ of mandamus. Mandamus is the tailor-made remedy for the extraordinary facts presented here. We continue to appreciate the Court's consideration. https://t.co/OD02kX3524
— paulgrewal.eth (@iampaulgrewal) May 23, 2023
Coinbase Seeks Regulatory Clarity
If the SEC chooses to deny Coinbase’s petition, it could be compelled through a mandamus — a court order ensuring government compliance — to address the issue of digital asset regulation. Coinbase argues that the SEC has been unresponsive, failing to provide clear guidelines despite Coinbase’s initial request and the court’s subsequent pressure for a response.
Moreover, the crypto exchange pointed out the SEC’s current enforcement campaign represents a significant departure from its previous stance on the applicability of securities laws to digital assets. The California-based crypto giant claims that the SEC now asserts the authority to indefinitely pursue enforcement actions against the industry based on undisclosed new standards.
Furthermore, Coinbase asserts that if the petition is ultimately dismissed, the court should continue to monitor the SEC’s actions, urging the commission to make progress in its rulemaking efforts. Pursuing a writ of mandamus would require the SEC to provide a response within seven days.
In its conclusion, the legal team representing Coinbase was quoted as saying:
The Court should retain jurisdiction and order the SEC to explain its delay to date, state when it will respond, and provide progress reports to the Court.
The outcome of this legal confrontation bears significant implications for the regulatory landscape of the cryptocurrency industry in the United States. A favorable resolution for Coinbase could pave the way for increased clarity and regulatory certainty, enabling crypto businesses to operate within a more stable and predictable environment. On the other hand, a denial or prolonged delay in addressing the issues raised by Coinbase could perpetuate the current state of ambiguity and hinder the industry’s growth.
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