Leading US crypto exchange Coinbase has filed a lawsuit against the US Securities and Exchange Commission (SEC) to force the regulator to respond to a petition filed in July 2022.
Last year, Coinbase filed a petition with the SEC asking it to clarify the circumstances under which a digital asset is considered a security and create a framework for regulating cryptocurrencies. According to Coinbase, more than 1,700 businesses and individuals have already supported her petition. The SEC did not publicly respond to this document, as a result, the exchange decided to go to court, informed Coinbase General Counsel Paul Grewal on his blog.
Today, we filed a narrow action in the US Circuit Court to compel the SEC to respond “yes or no” to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1/4 https://t.co/rlsS1DIFfl
— paulgrewal.eth (@iampaulgrewal) April 25, 2023
“The SEC still hasn’t responded to our petition of July last year, so we filed a lawsuit in the U.S. District Court today. Clearly, our regulators are not clear about cryptocurrencies, as even SEC Chairman Gary Gensler refused to clarify which cryptoassets are considered securities. The cryptocurrency industry and its users need clear laws and regulations that are suitable for the latest technologies. Enforcement action based on securities laws that do not apply to cryptocurrencies is not the answer,” Gruell wrote.
If the SEC refuses to consider the petition, Coinbase will be able to challenge this decision in court. Without an official response, the exchange cannot exercise its right to find out through the courts whether any decisions of the SEC were correct and officially defend the need for new rules.
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