On Monday, Coinbase (NASDAQ:COIN) revealed that the Securities and Exchange Commission (SEC) has finally responded to its request for rulemaking on digital assets. That answer was as anticipated as the Commission declined to pursue new rules.
Last month, Paul Grewal, the Chief Legal Officer of Coinbase, posted on the company’s blog that it had been one year since it had filed a request for rulemaking it since it had been ignored, Coinbase had filed a legal request for the SEC to respond.
Grewal said the SEC indicated that a rulemaking process could take years, and SEC Chair Gary Gensler’s public statements on policy are just his opinion and not formal guidance.
Today the SEC responded to Coinbase’s petition for a writ of mandamus — asking the court to require the SEC to respond just yes or no to whether it will undertake rulemaking for our industry. The SEC’s answer? A resounding maybe. 1/7
— paulgrewal.eth (@iampaulgrewal) May 16, 2023
Yesterday, Grewal added a more ironic reTweet, characterizing the SEC’s regulation of crypto as a type of bureaucratic fire-drill.
If only this were a parody… instead of a transcript. https://t.co/YtqkbjEFO3
— paulgrewal.eth (@iampaulgrewal) May 16, 2023
Beyond a change of administration, the only hope for firms like Coinbase is legislation working its way through Congress. While the House, controlled by Republicsans, will probably be on board – the Senate remains a known-unknown. Then it must be signed by the President. Don’t hold your breath.