Coinbase Submits Concluding Brief Challenging SEC’s Rejection of Rulemaking Petition
Coinbase Takes Bold Stand Against SEC in Third Circuit Filing
In a show of defiance against the SEC, Coinbase has filed its closing brief in the Third Circuit, challenging the regulatory body’s dismissal of its rulemaking petition. At the heart of the matter is a single dismissive sentence in the SEC’s order that simply “disagreed” with Coinbase’s assertion that its current regulations are unfeasible for cryptocurrency companies.
Coinbase argues that this lack of justification and specificity is enough to dismiss the entire case. The SEC has a track record of overstepping its boundaries, claiming extensive jurisdiction without clear authorization from Congress, and refusing to establish transparent guidelines.
Coinbase’s Chief Legal Officer, Paul Grewal, expressed the company’s frustration with the SEC’s baseless allegations and actions. In its filing, Coinbase highlights a Catch-22 situation in which the SEC demands compliance based on an overly broad interpretation of its authority, initiates aggressive legal action against non-compliant crypto companies, and then fails to establish the rules necessary for compliance.
According to Coinbase, this deliberate approach aims to dismantle the entire cryptocurrency industry by imposing unattainable requirements and punishing companies that cannot meet them.
Furthermore, Coinbase’s brief accuses the SEC of confirming its malicious intent to crush the crypto industry. The company argues that the SEC’s responses in this lawsuit validate its oppressive tactics, as it is willing to employ inconsistent and unsupported legal arguments to prolong its assault on the industry.
Coinbase’s filing insists that anything less than a court order for rulemaking will enable the SEC to continue its multi-faceted attack on the industry. Despite repeated pleas from the industry, the SEC has adamantly refused to provide the necessary regulations, intentionally making it impossible to comply with federal laws.
Coinbase maintains that only a court order directing the SEC to initiate rulemaking will put an end to its arbitrary actions. The company initially filed its rulemaking petition nearly two years ago, but the SEC attempted to sideline it through inaction. It took a mandamus petition, court orders, and the threat of an extraordinary writ to compel the SEC to issue even a cursory denial order.
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Cryptocurrency Regulations