Coinbase Files Petition Seeking Clarity on Crypto Regulation from SEC
Coinbase announced on April 24, 2023, that it has filed a petition in federal court requesting the US Securities and Exchange Commission (SEC) to respond to their petition submitted in July 2022, requesting the commission to propose and adopt rules governing the regulation of digital assets.
Petition for Digital Asset Regulation
Cryptocurrency exchange Coinbase has filed a court action to press the US
Securities and Exchange Commission (SEC) on its July 2022 petition requesting for regulatory guidance on digital assets. The chief legal officer of Coinbase, Paul Grewal,
announced on Monday that over 1,700 entities and individuals have submitted comments
in support of the request for clarity.
The
company believes that regulatory clarity in the crypto space is long overdue.
The securities regulator has been initiating a slew of regulatory enforcement
actions, but crypto firms have not been notified of how the SEC believes the
law applies to their business.
"The
SEC’s public statements and enforcement activity in the crypto industry seem
like the SEC has already made up its mind to deny our petition. But they have
not informed the public yet. So the action that Coinbase filed today requests the court to ask the SEC for sharing its decision," stated Grewal.
The
chief legal officer added:
"It
is also unusual for an agency to bring enforcement actions based on a view of
the law that has not been shared with the public formally. Coinbase is not
asking the court to instruct the agency on how to respond. We are simply
requesting the Court to order the SEC to respond, which they are legally
obligated to do."
Coinbase Pushes for "Basic Rulemaking"
The
Coinbase CEO recently tweeted that a few members of the company flew to the SEC
offices in Washington. "I met with the SEC today. We’ll continue pushing
for a clear rule book in the US for crypto," Brian Armstrong wrote. "The US can’t afford to fall
behind on this important technology to update the financial system."
The
firm noted in its Monday announcement that the legal action filed is part of a
"multi-year, continual plea to leaders in Washington for clear rules of
the road." Coinbase acknowledges that regulations are necessary and
highlights how the company has implored authorities to establish such
guidelines for better clarity. Coinbase seeks "basic rulemaking," and
while the federal court action seeks to address the impasse regarding the
petition, the company said it will pursue it till the end.
What
is your take on the legal battle between Coinbase and the SEC for clear regulatory
guidelines in the crypto industry? Please post your comments.
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