Coinbase’s Petition for Rulemaking Forces US SEC to Make a Decision
Coinbase, the largest cryptocurrency exchange in the US, has filed a legal action against the Securities and Exchange Commission (SEC) to force the regulator to provide clarity on digital asset regulations. The company had filed a rulemaking petition with the SEC in July 2022, but the regulator has ignored it. Coinbase is now compelling the SEC to publicly refuse to clarify crypto regulations or provide a response. The exchange’s chief legal officer, Paul Grewal, said that enforcement actions based on inapplicable securities law are not a solution. Coinbase has received comments from over 1,700 entities. If the regulator refuses the petition, the company will have grounds to challenge its court decision. However, the SEC has been conducting enforcement actions against crypto companies. Coinbase was issued a Wells Notice by the regulator threatening enforcement action against the exchange in March 2023. The exchange’s CEO, Brian Armstrong, has hinted that Coinbase may leave the US following the regulator’s actions.