Coinbase has asked a US court to compel the SEC to respond to a previous petition for rulemaking which asked for clearer regulatory framework for the crypto sector.
Major crypto exchange Coinbase has filed a lawsuit against the US SEC and Exchange Commission (SEC) that would compel the regulator to provide an answer to a previous petition by the company.
The SEC has adopted a more stringent approach towards the crypto industry in recent times, believing most firms are breaking securities laws without providing clear regulatory policies.
SEC Must Give a Yes or No Answer
The crypto exchange, in the summer of 2022, asked the SEC to “propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods, including potential rules to identify which digital assets are securities.”
Several months later, the American regulatory watchdog is yet to respond to Coinbase’s petition, with the latest lawsuit stating that the SEC has “unreasonably delayed” in taking an action.
Coinbase earlier received a Wells notice from the SEC, which stated that the firm may have violated securities laws. While the crypto exchange has maintained that it has not broken any law, it said it is prepared to go to court with the SEC.
SEC’s Gensler Believes Crypto Companies are Breaking the Law
However, the SEC Chairman said the Commission will not change its approach, stressing that cryptocurrency companies must comply with existing laws.