SEC’s Inaction on Coinbase’s Petition for Rulemaking Spurs Legal Action
Cryptocurrency exchange Coinbase is taking action against the Securities and Exchange Commission (SEC), asking a federal court to compel the agency to respond to its demand for clearer crypto regulations. Coinbase sent the SEC its “petition for rulemaking” last July, asking the regulator to propose and adopt rules for digital assets securities and provide answers to 50 specific questions that would provide “clarity and certainty regarding the regulatory treatment of digital asset securities.” The SEC is required to address Coinbase’s petition within a reasonable amount of time, but after nine months with no response, Coinbase is taking action.
The exchange argues that new rules would facilitate the use of digital asset securities and enable a more efficient allocation of capital in financial markets. The SEC could respond by saying new rules aren’t necessary, but if Coinbase disagrees, it can challenge the decision in court. Coinbase’s push for regulatory clarity is currently on hold until the SEC responds.
Clever Robot News Desk 25th April 2023