Regulation
Coinbase Files Closing Brief, Slams SEC for Unclear Regulations
Coinbase has made a bold move in its ongoing dispute with the SEC, filing its final brief in the Third Circuit Court. This crucial legal battle hinges on a single dismissive phrase in the SEC’s order that simply “disagrees” with Coinbase’s assertion that current regulations are impractical for crypto companies. But Coinbase is not backing down.
Here is the story.
Understanding the central problem
Coinbase claims that this lack of reasoning and detail is enough to dismiss the entire case. The SEC has made a habit of overreaching, claiming broad jurisdiction without clear authorization from Congress and refusing to provide clear rules.
Paul Grewal, Coinbase’s chief legal officer, criticized the SEC’s charges and actions as senseless. In the depositCoinbase describes a no-win scenario: the SEC demands compliance based on an overly broad interpretation of its authority, aggressively pursues crypto companies that fail to comply, and then refuses to establish the rules that would make the compliance possible.
The allegations continue to fly
Coinbase says the SEC’s actions appear to be a deliberate attempt to dismantle the entire crypto industry by imposing unworkable requirements and punishing companies that cannot meet them.
The brief further accuses the SEC of using inconsistent and baseless legal arguments to support its campaign against the industry.
The need for court-mandated regulation
Coinbase’s filing asserts that without a court order requiring rulemaking, the SEC will continue its arbitrary and oppressive actions. Despite repeated industry requests for clear regulations, the SEC has refused to provide the necessary rules, making compliance with federal laws impossible.
Coinbase insists that a judicial directive is essential to stopping the SEC’s arbitrary actions. The company filed its regulatory petition nearly two years ago, but the SEC attempted to sideline it through inaction. It took a petition for mandamus, court orders, and the threat of an extraordinary subpoena to compel the SEC to issue even a cursory denial order.
Will the SEC finally be forced to play by the rules? The future of crypto depends on this crucial legal battle.