A US court has ordered the US Securities and Exchange Commission (SEC) to respond to a complaint by cryptocurrency exchange Coinbase about how it applies securities laws to digital assets.
Court Gives SEC 10 Days to Explain How It Controls Cryptocurrencies
The Third Court of Appeals said Wednesday that the SEC must submit its response within 10 days. Coinbase can then provide a response within seven days.
Coinbase last week argued that the SEC provides insufficient regulatory guidance for U.S. companies operating in the crypto sector, saying the commission "should at least lay out how inappropriate requirements will be adapted to digital assets."
Cryptocurrency exchange Coinbase has cited a 2022 petition requesting formal rulemaking in the digital assets industry, to which the SEC has yet to respond. The 10-day deadline given this week refers to the need to provide a legal basis for why the SEC did not respond to the petition.
Bitcoin exchange Coinbase is seeking to launch an early attack against the SEC, which announced in March that the exchange will be suing for allegedly selling unregistered securities products.
Coinbase accused the SEC of being vague and inconsistent in its crypto regulation and filed a unique petition to force the agency to adopt rules for the industry.
On the other hand, the SEC argues that Coinbase and other crypto businesses should comply with current securities laws and register their products with the regulator.
*Not investment advice.