The issue was taken to court after the Stock Exchange Commission (SEC) rejected Coinbase’s request for rulemaking after 18 months of silence. XRP lawyers and some experts believe the SEC is inconsistent.
The US Securities and Exchange Commission (SEC) yesterday rejected cryptocurrency platform Coinbase’s rulemaking application. The SEC’s decision was justified by the need to protect its own rulemaking priorities.
Coinbase announced that it would take the issue to court after the SEC rejected its rulemaking request.
“Today, the SEC denied Coinbase’s petition for rulemaking for cryptocurrencies. After 18 months of silence, we went to court to get the response required by law. “With our discretion to the Third Circuit, we will again seek their assistance later today in appealing the SEC’s failure to comply.”
Coinbase had filed a petition with the SEC seeking “regulatory clarity” on how existing securities laws apply to the digital asset industry. Coinbase has been waiting for a response from the SEC for this petition request for a very long time, and the expected response came yesterday with the SEC’s rejection.
Coinbase filed a separate petition with the U.S. Court of Appeals for the Third Circuit on Friday afternoon. The court will evaluate the validity of this decision of the SEC.
XRP lawyer John Deaton and some industry experts and commentators believe the SEC chairman is clearly misleading the American public. Experts who had previously criticized Mr. Gensler’s hostile actions toward the stock market now suggest the SEC is reluctant to back down.
John Deaton: SEC Acted Conflictingly
John Deaton, an XRP lawyer, said Gensler’s previous testimony before Congress contradicted the SEC’s latest decision. Deaton reminded that the SEC Chairman said that cryptocurrencies create regulatory loopholes and argued that this latest SEC stance contradicts previous statements.
Ripple CEO Brad Garlinghouse also explained that there is a lot of regulation and uncertainty in the US cryptocurrency industry. On the other hand, Deaton argued that the SEC chairman’s stance on cryptocurrencies was politically motivated, a situation further exacerbated by the support of Senator Elizabeth Warren.