Coinbase Swift SEC seeks response to regulatory filing

Coinbase is expanding its efforts to respond to a regulatory inquiry from the US Securities and Exchange Commission (SEC). The move comes amid several legal battles between the two sides over the past year.

In a renewed effort, Coinbase has officially requested mandamus, which the SEC directs, to respond to the July 2022 rulemaking petition within a 30-day deadline. The exchange will require express approval or rejection of the petition.

Coinbase pushes for a 30-day deadline

According to the October 13 court filing, Coinbase emphasized that the 30-day ultimatum aims to force an official response from the SEC. If the company is not forced to take action, the commission may continue with removal and delay strategies, he said.

“The words and actions of the SEC and its officials outside of this proceeding are that the agency has denied Coinbase's petition in all but name,” Coinbase wrote.

Paul Grewal, Coinbase's chief legal officer, described the SEC's response as lackluster, merely bureaucratic. Grewal said:

“The SEC's lackluster “update” is a bureaucratic pantomime and proves that nothing short of mandamus will prompt the agency to take its obligations seriously.”

Meanwhile, a recent court filing continues the ongoing legal battle between Coinbase and the SEC. Since last year, the two entities have filed several legal actions against each other, including where the regulator accuses Coinbase of violating security laws with its cryptocurrency offerings.

In response, Coinbase moved to dismiss the case, citing a lack of regulatory transparency in the emerging industry.

The SEC's clean response

On October 11, Grewal shared an update from the SEC on X (formerly Twitter), which revealed that the regulator's staff had “made a recommendation” on Coinbase's request. The regulator's update did not include further details of these recommendations.

At the time, Grewal said the regulator should have responded considering the legal action taken against crypto-related firms. he said:

“A formal public answer to that question is still long overdue. And given their ongoing enforcement campaign against crypto, the SEC should at least tell them the timeline for a court decision.”

Coinbase's petition asks the commission to clarify how securities laws apply to digital assets.