Leading Bitcoin and altcoin exchange Coinbase filed a lawsuit against the US Securities and Exchange Commission (SEC) on April 24. The exchange plans to force the regulator to respond to its previous request for rules for cryptos. To this end, he initiated legal action. Here are the details…
Bitcoin and altcoin exchange Coinbase sues SEC
Coinbase took action against the US Securities and Exchange Commission (SEC) on April 24. The exchange has taken legal action to force the institution to respond to the earlier rule request. In July 2022, Coinbase filed a petition asking the SEC to use the rulemaking process to develop guidance for companies in the crypto industry. Current documents do not compel the SEC to comply with the petition. Rather, it plans to force the SEC to either accept or reject the petition if the lawsuit is successful.
Coinbase said the SEC must respond to petitions within a reasonable time. The exchange suggested that the SEC probably decided to reject his request. But he said the regulator did not make any statement on the matter. The current legal action was indirectly related to the Wells notification that Coinbase received from the SEC in March. This notice is a sign that the SEC may soon file a criminal complaint against Coinbase. Coinbase plans to fight the SEC in court if it decides to move forward.
According to Coinbase, before the public (or Coinbase itself) can object to certain SEC policies, the SEC must issue a statement on the matter. That’s why Coinbase needs the SEC to respond to its petition, even if the answer is “no”. This could lead to a response to cryptocurrency regulations.
Coinbase meets with SEC and Congress
Coinbase CEO Brian Armstrong also tweeted that he and his staff are meeting with the SEC. He then said that Coinbase will continue to push for a clear rule for cryptocurrencies. Armstrong and his team also met with members of Congress to discuss relevant issues, including the extremism of the SEC. Coinbase is one of many crypto firms targeted by the SEC recently. Others include Kraken, Bittrex, and Ripple. Last week, House Republicans criticized SEC Chairman Gary Gensler. At the center of the criticism was his institution’s tough stance towards the cryptocurrency industry.
In conclusion cryptocoin.com As we reported, in July 2022, Coinbase filed a petition asking the SEC to use the rulemaking process to develop guidance for companies in the crypto industry. However, current legal action does not directly compel the SEC to comply with the petition. But it aims to force the regulator to accept or reject the petition. Coinbase has accused the SEC of using an unreasonably long time to respond and believes the regulator will likely reject its request. The exchange is gearing up for a legal battle against the SEC after a Wells notice it received in March that the regulator may file charges against the firm.
