Coinbase Chief Legal Officer: The U.S. Court of Appeals for the Third Circuit Has Asked the SEC if It Would Deny Coinbase’s Previous Rulemaking Application

According to Paul Grewal, chief legal officer of Coinbase, on social media, the U.S. Court of Appeals for the Third Circuit has today issued a short order on Coinbase’s mandamus action, which mentions that the court has noted that The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase, and has asked whether the SEC's initiation of the lawsuit against Coinbase means that it will deny Coinbase's previous application to the SEC for pending rulemaking. The SEC has 7 days to make a decision. respond. According to Paul Grewal, Coinbase believes that if the SEC has not yet decided whether to reject the rulemaking application, it should not file a lawsuit, and that legislation or rulemaking must precede enforcement actions. If the SEC answers “no” to Coinbase’s rulemaking request, then Coinbase has the legal right to challenge that “no” in court, while still having some serious questions for the SEC. Coinbase would like to thank the U.S. Court of Appeals for the Third Circuit for bringing this matter to its attention.