Crypto Insider on the SEC: “An Embarrassment to the United States”
- Crypto personality Adam Cochran describes the slow-paced SEC rule-making process as an embarrassment to the United States.
- Journalist Eleanor Territt highlighted the SEC’s active filing and proposal for new rules unrelated to cryptocurrency.
- The SEC asked to dismiss Coinbase’s memo petition.
Adam Cochran, a partner at Cinnemhain Ventures and a prominent crypto personality, has criticized the SEC’s slow pace of rulemaking. Cochran addressed US lawmakers claiming that the SEC’s slow pace was an embarrassment to the US and a danger to technological innovation.
On May 16, Cochran tweeted a 5-part series detailing the SEC’s shortcomings toward the crypto industry. He attached an excerpt from a recent SEC filing where Chairman Gensler defended the SEC’s delays by citing previous rules that took 10 to 20 years. In contrast, Cochran explained, regulators in the US and internationally have already set their guidance for 2013-2015.
4/5 In the US and abroad, this directive came out nearly a decade ago for all but the SEC: – FinCen (2013) FIN-2013-G001– IRS (2014) Notice 2014-21– FEC ( 2014) ao2014-02– EBA ( 2014) EBA / Op / 2014/08 – GAO (2014) GAO-14-496– CFTC (2015) 7231-15
— Adam Cochran (@adamscochran.eth) (@adamscochran) May 16, 2023
Cochran criticized President Gensler’s refusal to provide guidance on digital assets while other departments had already made up their minds. He also noted the risks if the SEC takes too long to shape its rules toward digital assets.
If the SEC wants *another* contract to set formal rules on digital asset transactions – that’s fine. But, we can expect these transactions to be made in dollars and not dollars.
In response, crypto journalist Eleanor Terrett highlighted that the SEC has been actively introducing and proposing new rules on other matters unrelated to cryptocurrency. The tweet also implied that the SEC was negligent in creating rules for cryptocurrencies.
Meanwhile, over the past two years, the commission has filed 1,500 enforcement actions (50 related to cryptocurrency) and proposed more than 50 new rules ranging from proposals on climate change to short-selling disclosures. https://t.co/4qN6cxaWXH
— Eleanor Terrett (@EleanorTerrett) May 16, 2023
Cochran’s Twitter thread was in response to the SEC’s May 15 motion against Coinbase’s Mandamus petition. For a number of reasons, including non-compliance and unsubstantiated claims, the SEC claims that Coinbase (NASDAQ:) lacks the legal authority to file such a petition.
On April 24th Coinbase Global Coinbase has filed a petition for an authorization order with the Securities and Exchange Commission of the United States Court of Appeals for the Third Circuit (Court). The mandamos petition was Coinbase’s attempt to get the SEC to act on the company’s previous rulemaking petition filed on July 21, 2022, which sought to create new regulations for digital assets and bring clarity to the cryptocurrency market.
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