Coinbase Files Lawsuit Against SEC Seeking Regulatory Clarity

Key Points:

• Coinbase claims to have filed a lawsuit in a US federal court, asking the US Securities and Exchange Commission (SEC) for feedback on setting up specific rules for digital.
• The recent lawsuit seeks answers from the SEC on a lawsuit they filed last year asking for a formal rule-making in digital assets.
• Last month, the SEC allegedly listed and offered unregistered securities goods on Coinbase, and the agency threatened legal action against the exchange.

The largest US exchange Coinbase has filed a lawsuit against the US Securities and Exchange Commission (SEC) to ask for a formal regulation for digital assets.

According to the official Coinbase post, the exchange said it had filed a lawsuit against the US Securities and Exchange Commission (SEC) in a US federal court, intending to ask the court to order the SEC to respond lawsuit over cryptocurrency rules.

On Monday, Coinbase submitted an Administrative Procedure Act complaint to the US Securities and Exchange Commission, requesting that the Third Circuit Court of Appeals require the SEC to give “regulatory clarity” regarding how applicable securities laws are applied to the digital asset sector.

The filing is a preemptive move by the crypto exchange amid threats from the SEC that it will sue the exchange over allegations of listing and offering unregistered securities products in September before. Coinbase is expected to respond to specific allegations by the end of April.

The lawsuit will force the SEC to answer yes or no to Coinbase’s July 2022 petition asking the SEC to use its official rule-making process to provide guidance to the crypto industry. A rule-making process exists so that agencies can develop regulations with the benefit of public input and have their positions examined through judicial review. More than 1,700 organizations and individuals have submitted comments to the Coinbase petition, echoing the explicit request.

“From the SEC’s public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision.”

The exchange shared in its statement.

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