🎁 Exclusive offer: Get EXTRA Bits and Celebrate Bybit's 6th Birthday With $2.2M Prize Pool. Act Now!

SEC Receives a 10-Day Deadline to Address Coinbase's Crypto Regulation Concerns

SEC Receives a 10-Day Deadline to Address Coinbase's Crypto Regulation Concerns

After receiving SEC's response, Coinbase will have seven days to reply to the securities regulator.

The ongoing legal struggle between Coinbase and the US Securities and Exchange Commission (SEC) has advanced, with the Third Circuit demanding the SEC to respond to Coinbase's complaint concerning the need for transparent crypto trading rules within ten days.

The news about the development was revealed by Coinbase's chief legal officer Paul Grewal on May 3rd.

How to Learn Crypto The Easy Way? (Trending Beginners' Strategy)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Grewal shared that the court issued a text-only order instructing the SEC to address Coinbase's writ of mandamus—a court order directing a lower government official to fulfill their duties correctly—within the given timeframe.

The court also granted Coinbase permission to file a reply to the SEC's response in seven days after its submission, and Grewal expressed his gratitude for the court's in-depth examination of the case.

As the largest cryptocurrency exchange in the US, Coinbase filed a lawsuit in April, urging the court to force the SEC to reveal its stance on a previously submitted petition that included 50 specific inquiries about the regulatory treatment of particular digital assets. These questions encompassed a variety of topics, such as token classification as securities and clarification on several other issues.

Although the SEC has not publicly responded to the petition, it has increased enforcement actions and issued warnings to crypto exchanges. It has even sent a Wells Notice to Coinbase over a potential violation of securities laws.

Following Coinbase's regulatory struggles, US investment bank Citi downgraded Coinbase's shares from "buy" to "neutral" and lowered its price target, citing "too many unknowns" as the reason. Citi analyst Peter Christiansen stated that the downgrade would remain in place until the US establishes clearer regulatory "rules of the road."

However, this didn't stop Cathie Wood's ARK Invest from purchasing Coinbase shares. On May 1st, the company purchased around $8.5 million worth of Coinbase stocks.

Gile K. Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.

Loading...
Bybit
×
Verified

$30,000 IN REWARDS

Bybit Black Friday Deal
5.0 Rating