SEC Rejects Coinbase’s Plea for Crypto Regulation Clarity – Coinbase Takes Legal Action Against the Regulator
In a setback for Coinbase, the U.S. Securities and Exchange Commission (SEC) has turned down the cryptocurrency exchange’s request for regulatory clarity in the crypto sector. SEC Chairman Gary Gensler supports the agency’s decision to reject Coinbase’s petition, citing existing laws and regulations in place for crypto securities markets. In response, Coinbase has taken the matter to court and initiated legal action against the securities regulator to challenge the ruling.
Coinbase initially filed the petition in July of last year, seeking explicit guidelines on which digital assets should be classified as securities. After receiving no response from the SEC for 18 months, the crypto exchange escalated the situation to the court, prompting the agency to finally issue a denial on Friday.
Coinbase’s chief legal officer, Paul Grewal, expressed disappointment over the SEC’s decision and emphasized the importance of the court’s involvement. Grewal highlighted that Coinbase is seeking the assistance of the Third Circuit to challenge the SEC’s alleged neglect of its responsibilities in this matter.
Brian Armstrong, the CEO of Coinbase, defended the exchange’s decision to take the SEC to court, stating that their actions have compelled the regulator to respond. Armstrong also questioned the SEC’s reluctance to provide clear regulatory guidelines for the crypto industry, emphasizing the need for regulatory clarity.
The denial of Coinbase’s petition for crypto regulation clarity and their subsequent legal action against the SEC further intensify the ongoing discussions and debates surrounding the regulatory frameworks for cryptocurrencies in the United States.