Coinbase vs. SEC – Court Orders Response in 10 Days
• Coinbase’s legal battle for regulatory clarity saw a development as the U.S. Court of Appeals for the Third Circuit responded to its complaint against the SEC.
• The court has instructed the SEC to respond to Coinbase’s writ of mandamus within ten days and granted Coinbase the right to file a reply within seven days.
• Despite the lack of public response, the SEC has increased enforcement and issued warnings to crypto exchanges, even issuing a Wells notice letter to Coinbase in the past.
Coinbase’s Legal Battle For Regulatory Clarity
Coinbase’s legal battle for regulatory clarity over the trading of digital crypto assets saw a development as a U.S. court responded to its complaint against the U.S. Securities and Exchange Commission (SEC). According to a May 4 announcement from Coinbase chief legal officer Paul Grewal, the United States Court of Appeals for the Third Circuit responded to their complaint by ordering that SEC must respond with a writ of mandamus within ten days, granting Coinbase seven days for reply afterwards.
What Is A Writ Of Mandamus?
A writ of mandamus is essentially an order addressed to an inferior government official, ordering them fulfill their official duties properly. In this case, it was ordered by The Third Circuit Court that SEC must respond within 10 days as requested by Coinbase’s petition which raised 50 specific questions regarding regulatory treatment of certain digital assets such as how tokens are classified as securities and other matters seeking clarification on various other matters.
SEC Increased Enforcement Despite Lack Of Public Response To Petition
Despite lack of public response or clear rules governing digital asset trading set by SEC on Coinbase’s petition, it has not stopped them from increasing enforcement on crypto exchanges around US including issuing warnings along with Wells notice letter which typically warns companies that they might face enforcement action from SEC if found guilty anyhow related with cryptocurrency trading activities or anything else under regulation laws in US jurisdiction .