The U.S. Securities and Exchange Commission (SEC) has filed a new brief opposing Coinbase’s petition to compel the agency to establish a new regulatory framework for the cryptocurrency industry. The SEC’s response comes in a case before the U.S. Third Circuit Court of Appeals.
In the brief, the SEC argues against Coinbase’s petition, stating that the agency’s determination that new rulemaking for crypto assets is unwarranted is both reasonable and adequately explained. The SEC dismisses Coinbase’s assertion that existing digital asset regulations are “unworkable,” emphasizing that the current framework is sufficient and does not necessitate a complete overhaul.
The SEC’s brief refutes several key points raised by Coinbase, including the contention that courts struggle to apply existing law to digital asset cases. The agency asserts that courts have consistently upheld the applicability of current laws in these contexts, undermining Coinbase’s argument for the need for new regulations.
Furthermore, the SEC defends its decision not to prioritize crypto asset rulemaking, highlighting that courts rarely overturn an agency’s denial of a rulemaking petition absent a congressional mandate or a threat to public health and safety. The agency emphasizes that economic considerations alone do not justify the initiation of rulemaking proceedings.
Paul Grewal, Coinbase’s top lawyer, responded to the SEC’s filing, expressing confidence in the court’s understanding of the matter. Grewal criticized the SEC’s position, highlighting the agency’s refusal to provide additional explanation for its policy decisions.
“We are confident the Court will see this for what it is,” Grewal concluded.