The Ripple community expresses concerns over SEC’s slow decision-making in the Coinbase case, highlighting the risk of falling behind global regulations.
In a recent development in the ongoing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC), the Ripple blockchain community expressed concerns about the lengthy process it takes the SEC to decide a ruling.
John Deaton, the popular pro-XRP lawyer, agrees with the Ripple head of policy, Susan Friedman, who mocked the SEC’s slow progress in initiating the rulemaking process for cryptocurrencies.
Friedman highlighted the potential disadvantages the United States may face if it fails to keep pace with other global regulatory frameworks. She said:
“In the ‘years’ it may take the SEC to decide simply to start the process of rulemaking, MiCA will have gone into force alongside other global regulatory frameworks.”
The MiCA rule Friedman hinted at represents Markets in Crypto-Assets Regulation, a forthcoming regulatory framework to establish a unified set of regulations for crypto assets within European countries. Proposed by the European Commission in September 2020, MiCA is anticipated to be implemented by 2024, ensuring a harmonized approach to overseeing crypto assets across the EU.
In the "years"(!) it may take the SEC to decide simply to start the process of rulemaking, MiCA will have gone into force alongside other global regulatory frameworks. It's exactly why the work being done by @PatrickMcHenry, @CongressmanGT, and @RepFrenchHill is so important. https://t.co/NTF2oLXMfi
— Susan Friedman (@ss_friedman) May 16, 2023
Coinbase vs. SEC
Notably, Friedman’s remarks come amidst Coinbase’s legal battle with the SEC. Coinbase, a leading crypto exchange, had petitioned the SEC for a clear response on whether it plans to undertake rulemaking for the crypto industry.
The Coinbase chief legal officer Paul Grewal posted about the matter early today on Twitter, noting that it had sought a clear yes or no response from the SEC. However, the regulator’s recent response left the industry uncertain, as it provided a vague answer of “maybe” and suggested that rulemaking could take years.
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
— paulgrewal.eth (@iampaulgrewal) May 16, 2023
Acknowledging the need for rulemaking, the SEC informed the court that the process could potentially take years, indicating a lack of urgency. The commission indicated that it would rely on enforcement actions as a substitute for rulemaking in the foreseeable future.
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