Coinbase Seeks Regulatory Clarity from SEC
- Coinbase, one of the largest cryptocurrency exchanges in the world, has taken another step to seek regulatory clarity from the US Securities and Exchange Commission (SEC).
- The petition in question asks the SEC to provide overdue guidance for the crypto industry.
- Coinbase has filed a narrow action in federal court to compel the SEC to respond to its pending rulemaking petition.
Background on Coinbase’s Rulemaking Petition
Coinbase submitted a rulemaking petition to the US Securities and Exchange Commission (SEC) in July 2022. The petition asked that the SEC use its formal rulemaking process to provide guidance for the crypto industry. However, despite numerous calls for action, there has been no response from the SEC. This lack of clarity has left many in the industry uncertain about their legal status and potential liabilities.
Coinbase Takes Legal Action
In order to gain some clarity on this matter, Coinbase has now taken legal action. It is filing a narrow action in federal court which will compel the SEC to provide an answer – either yes or no – on its pending rulemaking petition. According to Coinbase’s Chief Legal Officer Paul Grewal, “Clear, sensible regulation is necessary for the long-term health and growth of the crypto industry”. He believes it is time for regulators like the SEC “to provide regulatory guidance for [the] crypto industry”.