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The U.S. Securities and Exchange Commission (SEC) stated on Tuesday that it has not reached a verdict regarding its response to Coinbase's (COIN) petition for rulemaking. Furthermore, the SEC emphasized that its enforcement action against the crypto trading platform does not undermine or conflict with any forthcoming decision on rulemaking.

The SEC has issued a statement addressing its current assessment of the rulemaking petition in light of its recent enforcement action against Coinbase. The regulatory agency filed a lawsuit last Tuesday, alleging that Coinbase was engaging in the operation of an unregistered securities exchange, broker, and clearing agency. As a result, the SEC's response aims to provide an update on how it is approaching the rulemaking petition given these developments.

Despite Coinbase's contention that the SEC has already rejected the petition, the regulatory body clarified on Tuesday that no definitive decision has been reached. However, the SEC acknowledged that its staff anticipates making a recommendation within a timeframe of 120 days.

The SEC emphasized that until and unless new rules are proposed, Coinbase is required to comply with the existing laws. The regulator reiterated this point while discussing its ongoing enforcement action.

"Regardless of whether the Commission determines to undertake the rulemaking sought by Coinbase, a decision the Commission has yet to make, Coinbase – like everyone else – is bound by existing law," the SEC filing said. "And Coinbase is free to vigorously assert its position that it has not violated that law in the current enforcement action."

In a tweet, Coinbase Chief Legal Officer Paul Grewal said the SEC "ignore[d] the clear statements of the Chair that confirm they have no intent to issue new rules, and instead conflate the evidence of a decision those statements provide with an argument that the statements are themselves a decision," though the SEC argued that "statements by the Chair do not – and could not – constitute Commission action denying Coinbase’s rulemaking petition."

The regulator insisted that any SEC decision would require a majority vote from a quorum.