Coinbase Sues the SEC to Seek Regulatory Clarity
The Crypto exchange, Coinbase has filed suit against the Securities and Exchange Commission (SEC) on Monday, asking that the regulator be forced to publicly disclose details to a months-old petition on whether it would allow the crypto industry to be regulated using existing SEC frameworks.
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
The SEC is Taking Action Against Crypto Exchanges
Since January, the SEC has taken action against crypto exchanges Bittrex and the crypto lender Genesis as well as a number of well-known and public actors within the crypto space, including crypto entrepreneur Justin Sun and disgraced Terraform Labs founder Do Kwon.
Just over a month ago, The SEC also warned Coinbase of legal action through a Wells notice however, however specifics for the Wells notice were not detailed.
According to Coinbase chief legal officer, Paul Grewal, in a blog post:
From the SEC’s public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision
The SEC has yet to provide a formal reply.