Court Grants 4 Months Deadline for U.S SEC Reply in Coinbase Lawsuit
The lawsuit filed by Coinbase and others to gain regulatory clarity from the Securities and Exchange Commission (SEC) on digital currencies will continue to be heard by the Third Circuit Court of Appeals. Moreover, the Writ of Mandamus application was acknowledged in the decision, and the commission was granted a chance to reply.
Deadline October 11
The court ordered the U.S. SEC to provide a follow-up report by October 11, 2023, which is 120 days from the date of the order. Also, when Coinbase asked the commission for anything, it rejected and asked for more time.
Moreover, Paul Grewal, chief legal officer of Coinbase, claims that the US SEC will publish a report on basic crypto regulations within the next 120 days. He was grateful that the court was shedding light on the SEC’s murky practices.
The current judgement by the Circuit, he said, should be applauded for acknowledging that the SEC is likewise responsible to the law.
Waiting for SEC’s Reply
Furthermore, in the eyes of some, this is a win for Coinbase. And the cause of regulatory clarity for the cryptocurrency sector as a whole. The Third Circuit has asked the SEC to update it on the petition’s status. A favorable ruling for Coinbase might be issued after the Commission issues a complete report by the new deadline.
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However, if the Commission declares that it has decided not to take any action within the additional time granted. The judge may rule in Coinbase’s favor. Should the court decide to grant the writ of mandamus. The commission will have to provide a straightforward “yes” or “no” answer.