Coinbase Takes Legal Action Against SEC Over Cryptocurrency Guidance Request

Coinbase has taken legal action against the U.S. Securities and Exchange Commission (SEC) by filing a petition to request a response on its earlier rulemaking request. The petition from Coinbase in July 2022 requested the SEC to utilize its rulemaking process to provide guidance for companies in the cryptocurrency industry. The recent legal filing is not mandatory for the SEC to abide with the petition but only requires the regulator to accept or reject the request in response to Coinbase’s previous petition.

SEC is bound to react within a reasonable time frame

Coinbase stated that the SEC needs to provide a reply within a reasonable period of time as outlined by several years prior court rulings. Coinbase suggested that the regulatory agency had likely taken a stance on its request to provide guidance to crypto firms but had not announced anything publicly. Should Coinbase succeed in its current action, it would give them and the general public the chance to scrutinize the SEC better should it act against its policies on such matters.
The current legal action arises connected to a Wells notice that Coinbase originally received in March when the SEC plan a motion against Coinbase. These developments lead Coinbase to pursue efforts to challenge any aggressive breaches to allow a clearer and concise rules framework schedule.

Crypto firms targeted by SEC

Coinbase BTC equity CEO Brian Armstrong wrote in a separate tweet that he had met with the SEC officials and that his company would continue to push forward for transparent policy outcomes within the crypto terrain. Armstrong further reiterated the importance of freedom of innovation in the increasingly accessible and utility imperative of cryptographic assets like Bitcoin.

It is interesting to note how SEC regulations continue to impact Crypto firms in recent times, with Kraken , Bittrex, and Ripple also facing regulatory challenges ahead. In response, last week House Republican legislators criticized the SEC chair Gary Gensler regarding what they deemed as continuous restrictions stifled the burgeoning crypto industry.
[h/t Mike Dalton]