- Coinbase files federal court action.
- SEC’s silence on rulemaking petition.
- Over 1,700 comments demand clarity.
Coinbase Challenges SEC in Legal Battle for Crypto Industry Clarity
In a bold move, Coinbase has initiated legal proceedings in federal court, urging the SEC to provide a straightforward response to their July 2022 rulemaking petition. This petition seeks the SEC’s formal guidance for the rapidly growing crypto industry, which has faced continued regulatory pressure from governments around the world, particularly in the United States.
Coinbase’s call for clarity has been echoed by more than 1,700 entities and individuals who submitted comments to the petition. The rulemaking process, established to allow public input and judicial review, has been met with silence from the SEC. As per the Administrative Procedure Act (APA), the SEC is required to respond within a reasonable time.
The SEC’s public statements and enforcement actions in the crypto industry indicate a probable denial of Coinbase’s petition. However, this decision has not been formally communicated, prompting Coinbase’s legal action. The court filing does not seek to dictate the SEC’s response but rather requests that the court compel the SEC to provide any response at all, as is their legal obligation.
In conclusion, despite ongoing strict regulation from government institutions worldwide, the crypto industry remains steadfast in its pursuit of providing convenience and accessibility to users globally. Coinbase’s legal action against the SEC demonstrates the industry’s resilience and determination to seek regulatory clarity and ensure a fair playing field for all participants.
