Coinbase cites SEC action against Kraken in push for crypto rulemaking

United States-based cryptocurrency change Coinbase has renewed its name to compel the Securities and Alternate Fee to answer the corporate’s petition to create guidelines on crypto, utilizing the regulator’s latest enforcement action against Kraken to again up its claims.

In a Nov. 22 submitting in the U.S. Court docket of Appeals for the Third Circuit, legal professionals representing Coinbase filed a response to a Nov. 21 letter from the SEC saying it deliberate to offer a standing report on the crypto rulemaking petition by Dec. 15. Coinbase filed its petition in July 2022, requesting the SEC “suggest and undertake guidelines to manipulate the regulation of securities which can be provided and traded through digitally native strategies,” with subsequent responses suggesting delays.

“Solely an order by this Court docket will make the Fee act,” mentioned the letter. “Though the company’s worry of a court docket ruling spurred it to do one thing, its proffer of one other ‘report’ — because it continues to hedge and delay — confirms that solely mandamus will impel the Fee to totally, lastly acknowledge that Coinbase’s petition for rulemaking was pocket-vetoed way back.”

We simply filed a brief response to yesterday’s SEC’s “replace” on our petition for rulemaking. We’re grateful for the Third Circuit’s consideration to this matter. pic.twitter.com/TOFfn0wWYu

— paulgrewal.eth (@iampaulgrewal) November 22, 2023

Associated: Binance charges prove ‘following the rules’ was the right decision — Coinbase CEO

Coinbase cited the SEC’s enforcement action against Kraken filed on Nov. 20, in which the fee alleged the crypto change commingled buyer funds and did not register as a securities change, dealer, supplier and clearing company. The letter didn’t reference the Nov. 21 settlement of civil and criminal cases against main crypto change Binance, which didn’t embody its ongoing case with the SEC.

“The Kraken action was essentially accepted by the Fee and […] is additional proof that the Fee sees no want for regulatory Readability.”

The push for rulemaking got here as experiences recommend the SEC could also be nearing a decision on a spot Bitcoin (BTC) exchange-traded fund for itemizing on U.S. markets. An approval would doubtless be one of the important constructive traits towards mainstream crypto adoption.

Journal: US enforcement agencies are turning up the heat on crypto-related crime