Andras Crow-Hreidar 
The U.S. Securities and Exchange Commission (SEC) recently informed a court that Coinbase didn’t provide enough evidence for the SEC to create new rules for the cryptocurrency industry .
The SEC Has Been Pursuing The Crypto Industry, Especially Coinbase For A Long Time
The SEC has been actively pursuing the regulation of the crypto industry with a particular focus on Coinbase for a significant period of time . They have requested the court to reject Coinbase’s petition . The SEC stated that they are still evaluating the application and have not yet made a decision .
In July 2022 Coinbase submitted a petition to the SEC seeking regulatory clarity on digital assets . As part of an ongoing legal dispute Coinbase filed a Mandamus with the U.S. Third Circuit Court of Appeals last month and the SEC issued a Wells Notice during the same week .
While in the past the SEC has taken several years to respond to petitions they informed Coinbase on Monday that they can expect a response within a year .
According to the SEC’s filing evaluating the different options proposed is a complex task . However despite this complexity Coinbase filed the petition less than ten months ago, completed some aspects of the petition less than three months ago and attempted to re-complete the registration just weeks ago .
SEC Will Keep On Enforcing
The SEC clarified that they will continue enforcing the existing rules while considering new rules and amendments to the current laws .
The SEC also highlighted that Coinbase is trying to circumvent the precedent that prevents relief in this situation by claiming that the SEC only needs to declare that they refused Coinbase’s petition . However the court pointed out that there has been no final decision by the agency regarding Coinbase’s petition and Coinbase’s argument is mostly based on an incorrect interpretation of the SEC’s recent enforcement actions as an indication that the Commission has decided not to proceed with the rulemaking process .
