Coinbase wants the SEC to finally act on its petition from July asking for regulations for the cryptocurrency business.
To get a “yes” or “no” answer to a petition the exchange has had outstanding since July 2022, Coinbase has launched an action in federal court in the United States.
Clearer regulatory rules for the cryptocurrency market in the United States were asked for in the petition, which was submitted to the Securities and Exchange Commission (SEC).
Coinbase submitted a petition to the SEC in which it posed 50 specific concerns about the regulatory status of various digital assets. The queries differed from wanting the SEC to elaborate on its process for categorizing tokens as securities to needing more specific instructions for buying and selling cryptocurrencies on exchanges supervised by the SEC.
Coinbase’s chief legal officer, Paul Grewal, wrote a blog post explaining the move, stating that the SEC must reply to the exchange’s rulemaking petition “within a reasonable time” under the Administrative Procedure Act.
After waiting for a response for almost nine months, the exchange is now actively pursuing one: “The SEC seems to have already decided against granting our petition. The general population doesn’t know this. Therefore, Coinbase’s lawsuit filed today just requests that the court request the SEC to disclose its conclusion.”
According to Grewal, an elaboration on these issues is crucial, particularly in light of the Wells Notice that Coinbase got from the SEC on March 22. This notice suggests possible enforcement proceedings against the cryptocurrency exchange.
Kraken, a rival exchange to Coinbase, settled with the SEC for $30 million on February 9 for failing to register its staking-as-a-service program, which the SEC said were securities.
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