Coinbase SEC Lawsuit Has New Development From The Exchange

Key Points:

• Coinbase files a lawsuit against the SEC over the regulatory body’s rejection of the exchange’s plea for new rules in the digital asset sector.
• The SEC denies Coinbase’s request for updated crypto regulations, prompting the exchange to take the matter to court.
• The ongoing Coinbase SEC lawsuit centers on the SEC’s classification of most crypto tokens as securities.

In a mounting legal battle, Coinbase, the prominent cryptocurrency exchange, has escalated its conflict with the U.S. Securities and Exchange Commission (SEC).

Coinbase SEC Lawsuit Has New Turns From Both Sides

Coinbase CEO Brian Armstrong disclosed that the exchange has initiated legal action against the SEC, challenging the regulatory body’s refusal to establish transparent guidelines for the digital asset industry. This move comes in response to the SEC’s denial of Coinbase’s petition for new rules governing the sector.

Previously covered by Coincu, Coinbase had officially sought a review of the SEC’s rejection by petitioning the court, prompting a legal evaluation of the appropriateness of the regulatory body’s decision. On Friday, the SEC rebuffed Coinbase Global’s plea for updated regulations in the digital asset realm, leading the largest U.S. crypto exchange to announce its intention to contest the denial in court.

This development marks the latest chapter in the ongoing Coinbase SEC lawsuit, characterized by the SEC’s assertion that a majority of crypto tokens fall under its jurisdiction as securities. The regulatory agency has pursued legal action against various crypto companies, Coinbase included, alleging the improper listing and trading of crypto tokens that it contends should be registered as securities.

Over the past two years, the cryptocurrency industry has consistently advocated for specific regulations in the United States. However, the SEC’s steadfast resistance has subjected companies in the sector to an enforcement-centric regulatory environment. In the Coinbase SEC lawsuit, the exchange alleges abuse of discretion and violation of the Administrative Procedure Act, further complicating an already intricate legal dispute.

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