SEC Responds to Coinbase Request for Crypto Clarity, Will Bitcoin Price Explode? Report

• The U.S. Securities and Exchange Commission (SEC) has responded to Coinbase’s request for regulatory clarity regarding crypto regulations.
• The SEC has expressed the need for additional time, requesting at least four months to make a recommendation on Coinbase’s rulemaking petition.

The U.S. Securities and Exchange Commission (SEC) has finally responded to Coinbase’s repeated calls for regulatory clarity regarding cryptocurrency regulations. However, the response brings no immediate resolution, leaving the industry in a state of uncertainty.

Coinbase’s chief legal officer, Paul Grewal, provided an update on the SEC’s response to the company’s request for regulatory guidance. Grewal reported that the regulatory watchdog, which has been aggressively targeting the crypto industry this year, falsely claimed that it has not made any decisions on new crypto rules.

The SEC has expressed the need for more time to address Coinbase’s concerns. According to the filing, the regulator is requesting a minimum of four months to make a recommendation on Coinbase’s rulemaking petition, stating that they anticipate being able to provide a recommendation within the next 120 days.

Coinbase initially submitted the petition in July 2022, seeking guidance and clarity on regulations for the new asset class. However, until recently, it had been met with silence from the SEC, which continues its enforcement actions against the industry.

Grewal expressed frustration with the SEC’s refusal to commit to any deadlines, despite explicit orders from the court. He highlighted the SEC’s dismissal of clear statements from the SEC Chair, which confirm the lack of intent to issue new rules. Instead, the SEC misconstrues these statements as a decision in themselves.

The SEC’s aggressive stance and lack of regulatory clarity have faced significant backlash from the digital asset industry. In response, lawmakers in the House of Representatives introduced a new bill aimed at removing Gary Gensler as the SEC Chair and restructuring the financial regulator. Senator Warren Davidson and House Majority Whip Tom Emmer led the effort, emphasizing the need to protect U.S. capital markets from what they perceive as a tyrannical chairman.

As the SEC’s response to Coinbase’s request for clarity is delayed, the crypto industry remains in a state of uncertainty regarding future regulations. Industry participants should closely monitor the situation and seek expert insights to navigate the evolving regulatory landscape effectively.