Coinbase, a popular crypto exchange, has filed a lawsuit against the Securities and Exchange Commission (SEC) because they want the SEC to share their answer to a petition from July 2022.
The petition asked if the SEC would regulate digital assets, like cryptocurrencies, using the existing SEC frameworks. However, the SEC has not publicly responded to the petition yet, and in the meantime, they have been increasing their enforcement actions and warnings against crypto exchanges, including Coinbase.
Coinbase’s chief legal officer, Paul Grewal, said that the SEC has not shared its decision on their petition to regulate digital assets. They filed a lawsuit to force the SEC to share its decision. The SEC has taken actions against several crypto exchanges and individuals accused of manipulating crypto assets since January.
This is Coinbase’s first move against the regulator, after being warned by the SEC of pending legal action. Grewal said that regulatory clarity is needed for the industry, as Coinbase and other crypto companies are facing potential regulatory enforcement actions without knowing how the SEC believes the law applies to their business.