In late April, Coinbase took legal action against the U.S. Securities and Exchange Commission (SEC) to force the agency to clarify its rules on crypto assets.
Coinbase Wins Round One of Fight with SEC
In late April, Coinbase took legal action against the U.S. Securities and Exchange Commission (SEC) to force the agency to clarify its rules on crypto assets. The crypto exchange claimed that it has been waiting for nine months for a response to its petition for rulemaking, which asked the SEC to define when a digital asset is a security and how to create a new market structure for crypto. According to Coinbase, the SEC's lack of guidance and transparency is harming its business and customers, who face potential enforcement actions without knowing how the law applies to them.
Coinbase's original petition for rulemaking was filed in July 2022. The SEC has not publicly commented on Coinbase's petition or probe. Coinbase's legal challenge related to the SEC’s non-response was filed in the US Court of Appeals for the Third Circuit on April 24th. Now, the court has said the SEC must respond to Coinbase’s petition within the next ten days.
