Coinbase filed the petition back last summer. Cryptoexchange demanded the regulator to clarify the Commission’s authority in overseeing the market for digital assets. The main question is whether the current securities regulatory framework applies to cryptocurrencies. After ignoring the SEC’s petition, Coinbase went to court and redirected the petition to the SEC several times.
In a recent response to Coinbase, the SEC clarified that the Commission is currently reviewing a petition for action by Coinbase itself, against which the regulator filed a lawsuit last Tuesday. According to the lawsuit, Coinbase has been operating in the country since 2019 as an unregistered broker and trading cryptocurrencies, which are securities;
Although Coinbase claimed that the SEC had already decided to deny the petition, the agency responded that it had not yet made a decision. Agency staff will respond to the petition within 120 days. Until the SEC decides to propose new rules, Coinbase must still comply with current law, the regulator added.
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“And Coinbase can vigorously defend its position that it has not violated this law in current enforcement actions,” the SEC said.
Bank of America recently changed its stock rating on cryptocurrency exchange Coinbase to “below average” in the wake of the SEC lawsuit.