Introduction
Coinbase, one of the largest cryptocurrency exchanges in the world, is continuing its efforts to get a mandamus for the Securities and Exchange Commission’s (SEC) response to its rulemaking petition. The exchange filed a petition for rulemaking with the SEC in December 2020, seeking regulatory clarity on the classification of cryptocurrencies as securities.
Background
The SEC has yet to respond to Coinbase’s petition, which has prompted the exchange to take legal action. Coinbase filed a petition for a writ of mandamus with the U.S. Court of Appeals for the District of Columbia Circuit in September 2021, asking the court to order the SEC to respond to its petition.
Coinbase’s Argument
Coinbase argues that the SEC’s failure to respond to its petition is causing harm to the cryptocurrency industry and its customers. The exchange claims that the lack of regulatory clarity is hindering innovation and investment in the industry, and that customers are being left in the dark about the legal status of cryptocurrencies.
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SEC’s Response
The SEC has not yet responded to Coinbase’s petition for a writ of mandamus. However, the agency has previously stated that it is working on providing regulatory clarity for the cryptocurrency industry. In July 2021, SEC Chair Gary Gensler testified before the Senate Banking Committee, stating that the agency is working on a regulatory framework for cryptocurrencies.
Conclusion
Coinbase’s efforts to get a mandamus for the SEC’s response to its rulemaking petition highlight the need for regulatory clarity in the cryptocurrency industry. As the industry continues to grow and evolve, it is important for regulators to provide clear guidelines on the classification of cryptocurrencies and the rules that apply to them.
