There was no SEC v Ripple case-related news to influence investor sentiments. However, Coinbase (COIN) retargeted the SEC after the SEC denied the rulemaking petition.

Coinbase Challenges SEC Denial of Rulemaking Petition

On Monday, Coinbase Chief Legal Officer Paul Grewal gave an update on the SEC rulemaking petition, saying,

“Today Coinbase filed our opening brief in the Third Circuit challenging the SEC’s denial of our rulemaking petition. Tl;dr: the SEC’s denial is arbitrary and capricious, an abuse of discretion, and a violation of the Administrative Procedures Act.”

Grewal added,

“If you go back and read the SEC’s perfunctory denial, you’ll be hard-pressed to find an actual reason for its inaction. This is despite the dozens of legitimate concerns we raised in our petition, including questioning the SEC’s authority over the digital asset space.”

In a series of posts on X (formerly Twitter), the Coinbase CLO also discussed how the SEC suddenly declared the right to oversee the US crypto space. Grewal noted the shift in stance vis-à-vis statutory authority, highlighting previous calls from the SEC for the authority to regulate the crypto market.

The issue of statutory authority sits at the heart of the Coinbase Motion to Dismiss (MTD).

In August, Coinbase filed a Motion to Dismiss the charges in the ongoing SEC v Coinbase (COIN) case. Coinbase argued the SEC lacked the statutory authority to regulate crypto exchanges.

If Judge Katherine Failla grants the Coinbase Motion to Dismiss, the ruling could force the SEC to end its campaign of regulation through enforcement. The outcome of the rulemaking petition may also present the SEC with challenges amidst increasing scrutiny of SEC activity in the courts.

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