In its response to a US federal court, the SEC says Coinbase has no right to compel the agency to issue guidelines for crypto companies “on a specific timeline”
Coinbase had already asked the court to make the SEC answer its July 2022 rulemaking petition, including questions intended to clarify how crypto rules apply. The agency’s response is an early test of whether regulated firms can use administrative-process litigation to force a regulator’s hand.
The SEC preserves its position that Coinbase cannot dictate the timing of crypto-specific guidance; Coinbase gains no immediate timetable for an agency response.
Crypto companies seeking clearer treatment remain dependent on existing SEC rules and case-by-case agency action rather than a court-ordered rulemaking schedule.
Second-order effects
The response pushes Coinbase’s regulatory strategy further toward litigation and formal petitions, a path reflected in its later bid to dismiss the SEC’s enforcement case on jurisdictional grounds.
Other crypto firms receive little incentive to expect rapid bespoke guidance, increasing the value of legal arguments over whether particular products or platforms fall within existing securities rules.
Third-order effects
If courts continue to limit efforts to compel agency timetables, crypto policy will be shaped more by enforcement disputes, petitions, and judicial review than by a single coordinated rulemaking process.
The later court demand that the SEC explain itself suggests that procedural accountability—not an ability to set the regulator’s calendar—may become the more durable route for challengers seeking clarity.
The trend: This is one data point in crypto’s shift from seeking tailored regulatory rules to contesting how existing securities authority is applied through courts and administrative process.
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
Overall the SEC's response reinforces Coinbase's longstanding concern that our industry does not have clarity on what the SEC may consider to be within or outside its jurisdiction at any time, and it is likely to continue changing its mind along the way. 6/7
The SEC also said that the public statements by Chair Gensler are not formal guidance or policy statements from the SEC and the public cannot rely on them as such. 5/7
1. Gary Gensler was recently asked about Coinbase's lawsuit against it seeking a writ of mandamus compelling it to issue actual written guidance regarding crypto. TLDR: on what that means - Coinbase is asking a federal court to MAKE the SEC give guidance on crypto.
The @SECGov just filed a 36-page brief arguing that the court should deny @Coinbase's request for the SEC to formally provide guidance for the crypto industry. Why not simply use their resources provide the much needed guidance? Seems like a waste. https://storage.courtlistener.c…
Coinbase got a court-ordered request for the most trivial crypto clarity from the SEC and they respond with 36 pages of legalese amounting to “we don't have to if we don't want to” Wouldn't it be easier to just provide some clarity? Gensler's SEC is proving unfit to regulate.
The Coinbase writ was never about getting an answer to whether the SEC will fairly regulate crypto. That's obviously a “no.” This was a Coinbase offensive against the SEC lawsuit against it coming this summer. And it got some interesting tidbits to use. 1/2 https://twitter.com/..…
So Coinbase has its answer from the SEC and it's even less clear than before. Regulation by enforcement is likely to be the norm. It's a noble fight by Coinbase, but is it a fight worth having? There are other countries that are looking to welcome them with open arms. https://twi…
I hope Coinbase's Petition is successful, but it took a few hits in the SEC response. The SEC makes the point that there is judicial scrutiny in the enforcement actions the SEC files, and in which Coinbase has filed two amicus briefs. https://twitter.com/... [image]
“Come in and just maybe register using a process we maybe will create that maybe applies to your business and maybe we'll honor if maybe we feel like it in a few years when we maybe get around to maybe creating a digital asset regulatory framework vs maybe establishing precedent.…