Overview

• The U.S. Securities and Exchange Commission (SEC) has responded to Coinbase’s request for regulatory clarity regarding crypto regulations.
• The SEC has requested a minimum of four months to make a recommendation on Coinbase’s rulemaking petition.
• Coinbase had been met with silence from the SEC, which continues its enforcement actions against the industry.

Coinbase’s Request for Regulatory Clarity

In July 2022, Coinbase submitted a petition to the U.S. Securities and Exchange Commission (SEC), seeking guidance and clarity on regulations for the new asset class. However, until recently, it had been met with silence from the SEC, which continued its enforcement actions against the industry.

SEC Response

The SEC has responded to Coinbase’s request for regulatory clarity regarding crypto regulations, but did not provide any immediate resolution. The regulator is requesting a minimum of four months to make a recommendation on Coinbase’s rulemaking petition. Paul Grewal, chief legal officer at Coinbase, expressed frustration with the SEC’s refusal to commit to any deadlines despite explicit orders from the court. He highlighted the SEC’s dismissal of clear statements from the SEC Chair which confirm that they have no intention of issuing new rules as yet.

SEC Anticipation

The SEC anticipates being able to provide a recommendation within 120 days regarding Coinbase’s rulemaking petition for regulatory clarity regarding cryptocurrencies .

Conclusion

Ultimately, while this response provides some hope that there may be progress in terms of cryptocurrency regulation in due course, there is still uncertainty as to when exactly this might happen or what form these regulations may take.