Crypto exchange Coinbase legally sues SEC over rulemaking petition.
The exchange firm said on Monday that Coinbase had filed a petition to compel the U.S. Securities and Exchange Commission to respond to a months-old petition that inquires about the securities regulator’s willingness to permit the industry to be regulated using current SEC frameworks. This is an increase in the exchange’s hostilities with the regulator, which has stepped up enforcement actions and warnings against crypto firms, including the American giant.
In their petition filed in July 2022, Coinbase questioned the SEC’s willingness to “propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods.” The petition has yet to receive a response from the SEC.
According to a post by Coinbase’s chief legal officer, Paul Grewal, “More than 1,700 companies and people have submitted comments to Coinbase’s petition reiterating the plea for clarity.
According to Grewal, it appears from the SEC’s public pronouncements and enforcement activities in the cryptocurrency market that the agency has already decided to reject Coinbase’s petition, “but they haven’t told the public yet.”
The petition, which was submitted on Monday to the U.S. Court of Appeals for the Third Circuit, is the most recent form of opposition the SEC has faced recently as the regulator pushes legal action against cryptocurrency companies Bittrex, Gemini, and Genesis as well as businesspeople like Justin Sun and Do Kwon.
Concerning some of the exchange’s goods, the SEC they are threatened to sue Coinbase last month. Although Coinbase is the industry leader in regulatory compliance, the American company has struggled over the years due to being unable to create and launch new products as its competitors expanded into foreign markets.
Co-founder and CEO of Coinbase, Brian Armstrong, has stated that unless the United States improves its approach to regulation, the exchange may consider transferring its headquarters elsewhere. He declared last week that “anything is on the table, including, you know, relocating or whatever is required.”
“Coinbase does not take any legal fight lightly, especially when they involve one of our regulators. For our industry, regulatory certainty is long needed. Even though we have yet to be told how the SEC believes the legislation applies to our business, Coinbase and other cryptocurrency companies could face regulatory enforcement actions from the agency, Grewal said.