Coinbase, a prominent U.S.-based cryptocurrency exchange, has once again urged the U.S. Securities and Exchange Commission (SEC) to address its petition for establishing cryptocurrency regulations. They emphasized the recent enforcement action against Kraken by the SEC as supporting evidence for their plea. In a submission to the U.S. Court of Appeals for the Third Circuit on November 22, Coinbase's attorneys responded to the SEC's communication on November 21, indicating its intention to provide rules for cryptocurrencies by December 15, referred to as the Petition Status Report. Coinbase filed a petition in July 2022, urging the SEC to propose and implement regulations for digitally issued and traded securities. The subsequent responses from the SEC suggested delays, prompting Coinbase's legal team to seek action from the court.
The submission highlighted the necessity of an order from the court to prompt the SEC into decisive action. While acknowledging some action from the agency due to the fear of a court ruling, Coinbase's legal representatives criticized the SEC's continued hesitancy and delays. They stressed that only fulfilling its duties would result in the SEC acknowledging Coinbase's petition for rulemaking, which had been previously dismissed by the Commission.
Coinbase specifically referenced an enforcement action taken by the SEC against Kraken on November 20, where the commission accused the cryptocurrency exchange of mixing customer funds and failing to register as various types of securities entities. However, the submission did not mention Binance's recent settlement of civil and criminal cases on November 21, nor did it cover the ongoing case between Binance and the SEC. The Coinbase filing also referenced the SEC's alleged belief that regulatory clarity may not be a necessity, citing the Kraken operation as an example.
This push for regulatory frameworks coincides with reports suggesting the SEC might be close to deciding on Bitcoin Exchange-Traded Funds (ETFs) listed on U.S. markets. The potential approval of these ETFs could signify a pivotal step for wider cryptocurrency adoption in mainstream financial circles.
