Popular cryptocurrency exchange Coinbase has filed with a federal court in the United States to force the Securities and Exchange Commission (SEC) to respond to a petition filed in July 2022.
Cryptocurrency Exchange Coinbase Files A Lawsuit With The SEC
The original petition asked the SEC to use its official rulemaking process to provide guidance for the crypto industry. Coinbase is waiting for a yes or no response to the petition.
The petition filed by Coinbase in July 2022 requested the SEC to provide industry guidance on a number of issues related to the regulation of cryptocurrencies.
These issues included whether certain cryptocurrencies were securities under US law and whether certain activities related to cryptocurrencies, such as staking or mining, would qualify as securities transactions.
Coinbase has also asked the SEC to clarify the regulatory actions of decentralized finance (DeFi) protocols.
Coinbase's latest lawsuit is narrow-minded, asking the SEC to respond only to the original petition. The company argues that the lack of clear guidance from the SEC creates uncertainty in the industry and hinders innovation.
Coinbase has been vocal about the need for regulatory clarity in the past, saying it wants to work with regulators to help shape the future of the crypto industry.
The SEC has yet to respond to Coinbase's latest action. The institution is actively working to regulate the cryptocurrency industry and has taken numerous sanctions against companies in this field.
However, there have been criticisms that the agency has been slow to provide clear guidance on how cryptocurrencies and other digital assets should be regulated under US law.
*Not investment advice.