Coinbase, one of the largest cryptocurrency exchanges, filed a lawsuit against the Securities and Exchange Commission (SEC) on Monday.
It demands the SEC to publicly reveal its response to a petition that had been pending for months. Coinbase is asking whether the SEC would allow the cryptocurrency industry to be regulated using existing SEC frameworks.
Coinbase sues SEC
Coinbase is one of the most prominent crypto companies along with Binance that actually want to work with regulators. However, the SEC is making it tough for them, especially with the help of the SEC chair, Gary Gensler.
Related article: Unclear crypto regulations may push Coinbase out of US – is it over?
Coinbase has asked the SEC to develop and approve guidelines for the regulation of “digitally native methods,” referring to digital assets like Bitcoin, Ethereum, and more.
Even though the SEC has not publicly responded to Coinbase’s petition, it has increased its enforcement actions and warnings against cryptocurrency exchanges in recent months, including Coinbase.
Today, we filed a narrow action in the U.S. 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
According to Coinbase’s chief legal officer, Paul Grewal, “the action Coinbase filed today simply asks the court to make the SEC share its decision.” This is Coinbase’s first official shot against the regulator, coming after the SEC issued a Wells notice warning of impending legal action.
Coinbase is frustrated with the SEC as the company is waiting for a reply since last July. Grewal explained the situation in a company’s blog post.
“Coinbase does not lightly approach any litigation, especially when it involves one of our regulators. Regulatory clarity is long overdue for our industry,” Grewal explained in the blog.
SEC’s response is pending
Coinbase has been vocal about the need for regulatory oversight without SEC’s proper reaction. Instead, SEC is perseverant in closing down as many crypto businesses as possible.
Even the case with Ripple is taking more than two years and Coinbase can only hope it won’t go the same way with them. Hopefully, the situation will clear out very soon.