Coinbase has accused the Securities and Exchange Commission (SEC) of employing delaying tactics in its ongoing pursuit of new crypto rules and has urged the U.S. Court of Appeals for the Third Circuit to intervene. In a letter to the court, Coinbase’s lawyer, Eugene Scalia, asserted that only a court order would prompt the SEC to take action.
Scalia argued that the recent update provided by the SEC to the court lacked substantive information about the progress of Coinbase’s petition for new rules. The SEC’s commitment to delivering another status report by December 15 was seen by Coinbase as a further attempt to “hedge and delay.” Scalia emphasized that mandamus, a court order, is necessary for the SEC to acknowledge that Coinbase’s rulemaking petition was effectively pocket-vetoed.
Coinbase initiated legal action against the SEC in April, following a petition submitted in the previous year, which sought the regulator’s involvement in crafting new rules specifically for digital assets. In June, the SEC requested approximately four months to respond to Coinbase’s petition. The recent letter from SEC lawyers to the court on November 21 maintained that the commission’s consideration of Coinbase’s rulemaking petition is proceeding in accordance with its established rules of practice.
Coinbase’s legal maneuver reflects its frustration with perceived foot-dragging by the SEC and underscores the exchange’s determination to push for regulatory clarity in the crypto space.
