- The SEC has responded to Coinbase’s petition for a writ of mandamus.
- According to the SEC, it will use enforcement actions as a substitute for rule-making for now.
- Coinbase will respond to SEC’s recent document within the next 7 days.
The US Securities and Exchange Commission (SEC) has made its formal reply to Coinbase’s lawsuit. According to the court document, it is in no rush to create clear guidelines for crypto companies and investors.
The delay is due to the nature of Coinbase’s petition for a writ of mandamus — to require the SEC to take responsibility for creating clear crypto rules, which it might not have done so. This, the SEC admitted, has never been requested before by any entity in the crypto industry.
Furthermore, SEC said that what Coinbase is demanding of it is “a necessarily complicated endeavor.” Consequently, since the SEC cannot come up with clear crypto guidelines yet, it will use “enforcement actions” as a substitute for rule-making.
The SEC’s reply was met with frustration from the crypto space. Some of them mentioned that the SEC should not be able to enforce anything without first implementing proper rules.
One commenter even provided an example taken from traffic rules.
Coinbase will respond to the SEC’s document within the next 7 days, according to Coinbase legal chief Paul Grewal.
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