Coinbase Chief Legal Officer: Challenging the SEC's rejection of our rulemaking application

Today, we filed closing arguments in the Third Circuit challenging the Securities Exchange Commission's denial of our rulemaking application, Paul Grewal, Coinbase's chief legal officer, wrote. At the heart of the case lies an assertion in the Securities Exchange Commission's review order that "disagrees" that the Securities Exchange Commission's rules do not work for digital asset companies. It does not provide any reasonable decision; it does not provide any reason at all. On that basis alone, the SEC's order must be vacated.
Without proper authorization from Congress and clear rules in place, the Securities Exchange Commission cannot claim broad jurisdiction over a new industry.
Notably, the Securities Exchange Commission has repeatedly said that it does not matter whether the industry can follow the rules. The Securities Exchange Commission is determined to hold the digital asset industry by the throat and refuses to provide the necessary rules demanded by the industry to tighten the squeeze.
We thank the Third Circuit for its careful consideration of this matter, and we will continue to fight for clear rules for the entire industry wherever possible.