The Securities and Exchange Commission (SEC) has given a vague response to Coinbase’s lawsuit, which demanded clarity on crypto regulation. The largest American crypto exchange had filed a petition for a writ of mandamus on April 25, leading to the SEC’s response. Coinbase insists on a formal explanation from the SEC on which digital assets should be registered as securities, and whether it will impose rules on the crypto industry or not. However, the SEC’s response is “an overwhelming maybe” according to Paul Grewal, the Chief Legal Officer (CLO) at Coinbase. The SEC told the court that the crypto rulemaking process may take years and that it is “in no rush.” Furthermore, the SEC alleges that Coinbase has no right to mandamus directing the regulator for certain duties. Coinbase has vowed to formally respond to the SEC’s letter next week.
However, Grewal’s conclusion is devastating, stating, “Overall the SEC’s response reinforces Coinbase’s long standing concern that our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time, and it is likely to continue changing its mind along the way.” It remains to be seen what the next steps for Coinbase are and whether the writ of mandamus can bring anything beneficial to the crypto industry.
The crypto market is now at a critical juncture price-wise, with the total market cap standing at $1.098 trillion, above the support line at $1.081 trillion. During the last sell-off, the 200-day EMA acted as crucial support. It remains to be seen how the market responds in the near future.
(Source: This article has been rewritten based on a news article from NewsBTC but without mentioning the website name.)