SEC Denies Crypto Rulemaking Request; Coinbase Goes Back to Court

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Bitcoin's price up again.The drama between the SEC and Coinbase is getting a new chapter. It’s been over a year since Coinbase proposed a Bitcoin ETF, and the SEC still hasn’t decided on a ruling for it. New developments in the case are stealing the thunder from the Bitcoin ETF, with Coinbase deciding to take matters in its own hands by going back to court.

Coinbase’s CLO Paul Grewal said that the exchange decided to go back to court to get answers after 18 months of silence. Coinbase will now challenge SEC’s abdication of its duty, and it’ll be very interesting to see what comes out of this case.

Meeting Set for January

Back in May this year, Coinbase won the backing from the Court of Appeals for the Third Circuit. It required the SEC to find a decision for Coinbase’s petition right away. However, the agency and its chief Gary Gensler objected. But, nowhere to turn, it eventually obeyed and made a ruling in June that harms Coinbase’s chances for a spot ETF.

But, months later, the case hasn’t progressed at all. Gensler recently issued a statement that essentially denies Coinbase’s petition for broad crypto rules. The SEC believes that not every crypto asset is necessarily offered and sold as security, especially when it comes to Bitcoin. This goes against the agency’s somewhat softer stance against ETFs based on spot Bitcoin prices.

A meeting is now set for January 17 right after New Year where Coinbase and the SEC will face off. This meeting holds great significance—maybe an even bigger one than the proposed January 10 deadline for the Bitcoin spot ETF. Many believe that these might be crypto’s most significant legal development in the past few years. Of course, Coinbase is under the spotlight. If it wins its case, it will essentially reject the SEC’s controversial ‘regulation by enforcement’ strategy that many experts have criticized.

If it loses, the decision might give the SEC the power to operate the way it wants to. As you can see, the meeting will be very significant, so this case may be a game-changer. The good news is that experts believe the judge won’t rule in the SEC’s favor, as dismissals of such cases rarely happen before an intriguing discovery.

The Drama Steals the Bitcoin ETF’s Thunder

This drama has been dragging on for far too long, and it’s stealing the thunder from the Bitcoin ETF. The final date for the SEC’s decision is January 24, but everyone’s hoping that the January 17 meeting will be decisive.

There’s definitely a lot of drama surrounding this case, and crypto fans and investors are hoping that the SEC comes out on top of it. The new developments come after a previous SEC court loss which was positively accepted by its fans and all crypto enthusiasts. Back then, Coinbase’s chief legal officer was adamant that a Bitcoin ETF is coming soon, but a few months later, there’s new drama surrounding the face-off. We hope that it all gets solved in January – the crypto world deserves it.

Author: John Jackson