Coinbase Takes Legal Action to Force SEC to Respond to Crypto Rulemaking
Author: Naomi GonzalesThe exchange's July 2022 petition, asked the SEC to answer a total of 50 specific questions concerning the regulatory treatment of certain digital assets. These questions were related to topics such as digital currency securities regulations, custody solutions and digital asset exchanges.
Although nine months have passed without the SEC providing an answer, Coinbase Chief Legal Officer Paul Grewal said that the Administrative Procedure Act requires the SEC to respond to the exchange's rulemaking petition "within a reasonable time". In Grewal's opinion, it is important for the SEC to provide an answer - even if it is a "no" - in order to ensure that regulations remain clear and transparent.
Therefore, Coinbase has taken the legal action in the U.S. federal court, which will compel the SEC to provide a yes or no response to the exchange's July 2022 rulemaking petition. This course of action highlights the need for regulatory clarity in the cryptocurrency industry, which is essential for its long-term development.
The regulatory framework surrounding digital currencies is ever-changing, so the industry needs solid, reliable guidance. Coinbase's legal action signifies the urgency of this situation, marking an essential step in a long journey towards reliable regulations for the cryptocurrency industry.