Coinbase legal chief Paul Gruel said the court responded to the exchange’s demand that the SEC properly perform its official duties.
In April, Coinbase sent the agency a list of 50 questions to find out: what the regulator relies on when it classifies cryptoassets as securities.
The court ordered the SEC to provide a response to Coinbase executives, and Gruel said he hopes the decision will bring the cryptocompanies’ legal battles with the regulator closer to a denouement.
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The agency has already been approached repeatedly by other participants in the crypto industry, demanding clarification of the standards they need to meet.
But instead of clarification The SEC is tightening measures against cryptocurrency companies, accusing them of selling unregistered securities and imposing fines.
In March, the agency notified Coinbase that it could punish it for violating securities laws.
Because of Coinbase’s regulatory problems, U.S. investment bank Citigroup downgraded the company’s stock rating from “buy” to “neutral”.
Citi analyst Peter Christiansen suggested that the rating will be downgraded until U.S. regulators clarify regulatory requirements for cryptocurrencies.
Class action lawsuits have recently been filed against Coinbase for insider trading of stock and privacy violations in the collection of biometric data.