Crypto exchange Coinbase has filed a petition requesting the court to force the U.S. Securities and Exchange Commission (SEC) to create a clear framework for digital assets.
The petition was filed in the U.S. Court of Appeals for the Third Circuit.
- The request mainly aims to compel the SEC to respond to a petition for rulemaking Coinbase submitted last year.
- The rulemaking petition urged the U.S. regulator to explain how securities laws apply to cryptocurrencies and create a new legal framework for the crypto market.
- Coinbase said they had to take new legal action since the agency did not provide any response to the petition for months.
- The move came shortly after Coinbase was served a notice by the SEC about further action over a potential violation of securities laws through its exchange and staking services.
- At
the time, Coinbase's chief legal officer, Paul Grewal, said they
welcomed a legal process to clarify the issue and prove that the SEC is
not fair and reasonable when it comes to digital assets.
- Several days before the Wells notice, Coinbase also submitted an 18-page petition to the agency, explaining why staking cannot be universally considered securities.
- Coinbase CEO Brian Armstrong recently stated that the company could move its headquarters outside the U.S. if the regulatory environment does not change in the country.
- SEC
Chair Gary Gensler has been famous for his strict regulatory approach
toward crypto assets over the years and has reiterated his belief that
all crypto assets other than Bitcoin (BTC) are securities several
times.
- Gensler
has also repeatedly stated that existing rules are clear, and crypto
firms just reject complying with them, so there is no need for new
crypto-specific regulations.
- Over
the last several months, many crypto exchanges, including Coinbase,
Kraken, Bittrex, and Binance, came under increased scrutiny by the SEC.
