Due to Unclear Crypto Regulations in the US, Coinbase Sues SEC

Liputan6.com, Jakarta Cryptocurrency exchange Coinbase has filed a court action to pressure the US Securities and Exchange Commission (SEC) regarding a July 2022 petition seeking regulatory guidance.

In an announcement on Monday, April 24, 2023, Coinbase’s chief legal officer, Paul Grewal, emphasized that more than 1,700 entities and individuals submitted comments to support requests for clarity.

The company believes regulatory clarity in the crypto space is long overdue. Even though securities regulators are initiating a series of potential enforcement actions, crypto companies have not been briefed on how the SEC believes the laws apply to their businesses.

“From the SEC’s public statements and law enforcement activities in the crypto industry, it appears that the SEC has decided to reject our petition. But they haven’t told the public yet. So the action that Coinbase filed today is simply asking the court to ask the SEC to share its decision,” Grewal wrote, quoted from Bitcoin.com, Friday (28/4/2023).

Grewal added that it was unusual for an agency to take enforcement action based on legal views that had not been formally shared with the public.

“Again, Coinbase is not asking the Court to instruct the agency how to respond. We are simply asking that the Court order the SEC to respond at all, which they are legally obligated to do,” Grewal continued.

The company noted in its announcement Monday the proposed legal action is part of years of continuing pleas to leaders in Washington for clear rules of the road.

Coinbase acknowledges regulation is necessary and highlights how the company has asked authorities to establish such guidelines for greater clarity.

Coinbase is seeking “ground rulemaking,” and while the federal court action seeks to resolve the impasse regarding the petition, the company says it will be pursued to the end.

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Speculation of cryptocurrencies especially Bitcoin increased during the pandemic, with high volatility in value allowing people to get rich quick. But the threat of sudden poverty also exists. This has not dampened the interest of the business world and investors to participate in…