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SEC Ordered 10 Days to File Response to Coinbase’s Petition

SEC Issues Wells Notice Against Coinbase for Listing Unregistered Securities

A US court has ordered the Securities and Exchange Commission to respond to Coinbase’s complaint regarding the lack of clarity on the regulation of the industry using existing frameworks.

The SEC has been ramping up enforcement actions and warnings against crypto firms, including Coinbase. Amidst this tension, Coinbase Chief Legal Officer Paul Grewal announced on Twitter that the Third Circuit Court of Appeals directed the SEC to file a response to the crypto exchange’s mandamus petition within ten days, giving Coinbase the right to reply within seven days of the SEC’s response.

The original petition, which dates back to July 2022, asked if the SEC would propose and adopt rules to regulate securities offered and traded via digital methods. Despite no specific public responses from the agency, the SEC issued a Wells notice to Coinbase, indicating enforcement actions against the exchange. This prompted Coinbase to file an action to compel the securities regulator to provide a yes or no response.

Since January, the SEC has aggressively targeted crypto platforms and several individual actors accused of manipulating crypto assets. Consequently, firms are considering moving their operations to friendlier jurisdictions.

Meanwhile, Coinbase launched a marketplace for non-US institutional users based in Bermuda and approved by the Bermuda Monetary Authority (BMA).