U.S.-based crypto exchange Coinbase is seeking more clarity from the SEC on the regulation of digital assets.
The SEC Has Asked for More Time to Reply to Coinbase's Request
U.S.-based crypto exchange Coinbase is seeking more clarity from the SEC on the regulation of digital assets. The company filed a lawsuit in April, asking the court to order the SEC to respond to its petition for rulemaking, which contained 50 specific questions about how the SEC determines whether a token is a security or not.
The SEC has asked for more time to reply to Coinbase's request, claiming that it has not decided what action to take on the petition and that Coinbase's lawsuit has no merit. The SEC also said that it does not intend to issue new rules on crypto regulation, despite the statements of its chair Gary Gensler that the SEC has authority over most crypto assets.
Coinbase's chief legal officer Paul Grewal criticized the SEC's response, saying that it ignored the Court’s explicit order and refused to commit to any deadline. He also accused the SEC of increasing enforcement and issuing warnings to crypto exchanges without providing clear guidance.
Coinbase's lawsuit is part of its legal battle for regulatory clarity over the trading of digital crypto assets, which it says are essential for innovation and growth in the crypto industry. The company argues that the SEC's current approach is vague, inconsistent and unpredictable, and that it creates uncertainty and confusion for market participants.
