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Coinbase files legal action against SEC over lack of regulatory clarity – Bitcoin News
On April 24, 2023, Coinbase announced that they had filed a lawsuit in federal court asking the US Securities and Exchange Commission (SEC) to respond to their petition. The petition, submitted in July 2022, asked the commission to propose and adopt rules for the regulation of digital assets.
Coinbase Asks SEC to Respond to Digital Asset Regulation Petition
Cryptocurrency exchange Coinbase has filed a lawsuit to press the US Securities and Exchange Commission (SEC) on its July 2022 petition seeking regulatory guidance. In an announcement on Monday, Coinbase’s chief legal officer, Paul Grewal, emphasized that over 1,700 entities and individuals submitted comments in support of the request for clarity.
The company believes that regulatory clarity in the crypto space has been waiting for it. Despite the securities regulator launching a number of potential regulatory enforcement actions, crypto firms have not been informed of how the SEC believes the law applies to their operations.
“From the SEC’s public statements and enforcement activity in the crypto industry, it appears that the SEC has already decided to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today is simply asking the court to ask the SEC to share its decision,” Grewal wrote.
The firm’s legal director added:
It is also unusual for an agency to file an enforcement action based on a view of the law that it has not yet formally shared with the public. Again, Coinbase is not asking the court to instruct the agency how to respond. We are simply asking that the Court order the SEC to respond at all, which they are legally obligated to do.
Coinbase’s announcement follows the CEO’s recent tweet that said a few members of the company flew to the SEC offices in Washington. “Meet with the SEC today. We will continue to push for a clear rulebook in the US for crypto registration,” Brian Armstrong wrote. “The United States cannot afford to fall behind on this important technology to update the financial system.”
The firm noted in its Monday announcement that the lawsuit is part of a “multi-year, ongoing plea to leaders in Washington for clear driving rules.” Coinbase acknowledges that regulations are necessary and highlights how the company has asked the authorities to establish such guidelines for better clarity. Coinbase is seeking “fundamental regulatory action,” and while the federal lawsuit attempts to address the deadlock over the petition, the company said it will pursue it to the end.
What are your thoughts on the legal battle between Coinbase and the SEC over the need for clear regulatory guidelines in the crypto industry? Share your thoughts on this topic in the comments section below.
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