Coinbase sues the SEC

After the petition, the legal proceedings. The crypto exchange US attacks the SEC before the courts. Objective: compel the regulator to define clear rules on the digital assets.

Existing securities laws “cover most of the activity in the crypto markets,” considers the SEC chairman, Gary Gensler. However, this is not the view of many companies in the sector, including Coinbase.

Its CEO, Brian Armstrong, has publicly called, on several occasions, for the authorities to define a clear regulatory framework. As such, it welcomed the vote of MiCA in Europe. “This comprehensive framework will give crypto organizations the confidence to invest and grow in the region,” said the exchange.

Compelling the SEC with a court ruling

He does not despair of obtaining a framework comparable to the United StatesEven if it means compelling the American stock market regulator. Last summer, the exchange launched a petition in this sense, without much result. The time has come to take new actions.

These take the form of a complaint filed in court. The goal is to get the SEC to define rules for digital assets. Is such a decision part of the stock market watchdog’s intentions? Coinbase doubts it.

It seems that the SEC has already decided to reject our petition. But it has not yet informed the public. Thus, the action Coinbase filed today simply asks the court to ask the SEC to share its decision,” writes Paul Grewal, its general counsel.

Today, we filed a narrow action in the U.S. Circuit Court to compel the SEC to respond “yes or no” to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1/4 https://t.co/rlsS1DIFfl

– paulgrewal.eth (@iampaulgrewal) April 25, 2023

In order to win its case, Coinbase has initiated a specific procedure, a subpoena justified by exceptional circumstances, the outcome of which may lead a court to require federal officials to act.

Coinbase increases pressure for clear rules

It’s a new legal front opening up for Coinbase, which is already under investigation by the same regulator. The exchange reported last month that it had received a “Wells notice” from the SEC informing it of an ongoing proceeding.

The agency charges that an “unspecified” portion of the digital assets listed by the exchange violated the securities. Its investigations also concern the staking service Coinbase Earnas well as on Coinbase Wallet and Prime.

Against this backdrop, the firm is leaving the threat of moving its operations overseas. The stated goal remains the same: to remedy what it sees as a lack of regulatory clarity for digital assets.

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