US SEC Still Needs 4 Months to Respond to Coinbase's Petition for Rulemaking

The US Securities and Exchange Commission (SEC) said that it hasn't decided whether or not it will respond to Coinbase's petition for formal rulemaking in the digital assets sector filed last year, and it may still need 120 days to make a recommendation on the petition.

In the filing submitted to the Third Circuit, the SEC said, "there is no merit to Coinbase's extraordinary request for a writ of mandamus to compel the Commission to act on Coinbase's wide-ranging rulemaking petition within seven days. Regardless of whether the Commission determines to undertake the rulemaking sought by Coinbase, a decision the Commission has yet to make, Coinbase – like everyone else – is bound by existing law."

In April, Coinbase sued the SEC, requesting it to respond to the rulemaking petition. Though Coinbase argued that the SEC had rejected the petition, the regulatory agency insisted that it hadn't made the decision. Last week, the court ordered the SEC to clarify its stance on the petition.

After the SEC's latest response, Paul Grewal, Chief Legal Officer at Coinbase, pointed out on Twitter that the SEC ignored its Chair Gary Gensler's clear statements "that confirm they have no intent to issue new rules", which are evidence that a decision has been made.

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