Coinbase files Mandamus Petition – In a recent development, Coinbase, the largest crypto exchange has escalated its ongoing case with the SEC. This move was done to ensure transparency and guidelines clarity in the crypto industry. This would in turn create a major impact on the crypto market.
With the Securities and Exchange Commission increasing scrutiny on digital assets, the new petition will pave the way for the legal tussle between industry players and the watchdogs.
Coinbase Mandamus Petition
The Mandamus Petition filed by Coinbase is strategic in the sense that it moves to challenge the SEC demanding clear guidelines for crypto regulations. In the petition, it is claimed that the SEC failed to provide adequate notice as regards Coinbase’s plan to launch “Lend,” a lending program.
Late last night Coinbase replied in the Third Circuit to the SEC’s arguments against our petition for a writ of mandamus. Mandamus is the tailor-made remedy for the extraordinary facts presented here. We continue to appreciate the Court's consideration. https://t.co/OD02kX3524
— paulgrewal.eth (@iampaulgrewal) May 23, 2023
Coinbase claims that the SEC has not made any explicit regulations or publicly expressed its worries, putting the firm in a condition of ambiguity. For context, A writ of Mandamus according to robertmalovelaw.com is “a remedy that can be used to compel a lower court to perform an act that is ministerial in nature and that the court has a clear duty to do under the law.”
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By submitting the mandamus petition, Coinbase hopes to force the SEC to issue precise regulations for the oversight of cryptocurrencies, leveling the playing field for all market players. This legal action serves as a reminder of the increasing need for regulatory clarity and establishes a precedent for other cryptocurrency businesses to challenge governmental actions that they believe to be unjust or contradictory.
Implications for the crypto industry
Coinbase filing the writ of mandamus has major implications for the general crypto industry. Firstly, it is important to note that this legal tussle shows the present struggle between the crypto industry and its regulators. The legal battle is a move to push the SEC to establish clearer regulations for cryptocurrencies.
The result of the case will decide how regulations in the future will turn out. Also, it will provide much-needed clarity for other crypto firms in the industry. Also, this is an indication that Coinbase is willing to operate within a transparent framework and comply with all the laid down rules.
Furthermore, the Coinbase move to file the mandamus petition could encourage other crypto firms to take similar actions against the Commission in pursuit of clearer regulations.