SEC Must Respond to Coinbase Petition in 10 Days

• SEC failed to respond to Coinbase’s petition over rulemaking for over nine months.
• A US court has ordered the Securities and Exchange Commission to respond to Coinbase’s complaint within ten days.
• The SEC issued a Wells notice to Coinbase, signaling its intention to conduct enforcement actions against the exchange.

SEC Ordered 10 Days to File Response to Coinbase’s Petition

The Securities and Exchange Commission (SEC) has been given a 10-day deadline by a US court to file a response to Coinbase’s petition about clarity on whether the securities regulator would allow the industry to be regulated using existing frameworks. This follows after the agency had failed to respond for over nine months.

Coinbase’s Complaint

Coinbase first filed their petition in July 2022 asking if the SEC would propose and adopt rules governing the regulation of securities that are offered and traded via digitally native methods. However, there was no response from the agency at that time.

SEC Issued Wells Notice To Coinbase

In light of this, the SEC issued a Wells notice indicating their intention of conducting enforcement actions against cryptocurrency exchanges including US crypto giant, Coinbase. This prompted Coinbase to file a narrow action in federal court trying to compel an answer from the regulatory body as soon as possible.

US Court Issues Order To SEC

A text-only order was issued by Third Circuit Court of Appeals directing that SEC answer Coinbase’s complaint within ten days or face consequences for failing do so. Furthermore, it granted Coinbase with rights to file a reply seven days after receiving the response from SEC.


This recent development shows not only how important it is for regulators such as SEC answer questions raised by cryptocurrency firms but also how quickly they need address these matters in order avoid any further delay in bringing clarity into this space sooner rather than later.