[NEWS] Coinbase sues SEC over regulatory clarification

Coinbase, a US cryptocurrency exchange, announced on the 25th that it has filed a lawsuit against the SEC (US Securities and Exchange Commission).

According to the announcement, this action is to ask for a response to a petition filed by Coinbase in July last year seeking clarification of cryptocurrency regulations, and the lawsuit will aim to resolve a limited issue.

Paul Grewal, Coinbase's Chief Legal Officer and head of compliance, risk management, and government relations groups, criticized the SEC via his Twitter account, saying, "The SEC has not responded to our petition since last July, even though it is required by law to do so within a reasonable time."

He continued, "Even the SEC Chairman has refused to say which cryptocurrencies qualify as securities. This makes it clear that cryptocurrency regulations are not clear."

Through the petition filed in July last year, Coinbase asked the SEC to "propose rules governing new regulations regarding the offer, sale, registration, and trading of securities offered and traded in digitally native manners."

The complaint argues that without such rules, the SEC has no authority to regulate crypto assets listed on Coinbase. It also says that Coinbase does not even list crypto assets that qualify as securities on its platform.

In addition, Grewal also said in Coinbase's official announcement that "it is unusual for a government agency to take enforcement action based on a legal opinion that has not been formally and publicly disclosed," and that "the SEC is determined to deny our petition."

According to Coinbase, more than 1,700 organizations and individuals have signed the petition submitted by the exchange, calling on the SEC to clarify regulations.

The SEC has been tightening its grip on cryptocurrency-related companies this year. Since January, it has filed charges against many companies and parties, including cryptocurrency exchanges Bittrex and Gemini, cryptocurrency lending service Genesis, and cryptocurrency entrepreneur Justin Sun.

It has also been learned that Coinbase received a Wells Notice in March of this year, informing companies and individuals that the SEC plans to take legal action.

The targets are said to be cryptocurrencies and staking services listed on Coinbase, but details have not been disclosed.

In response, Coinbase has indicated that it is prepared to engage in a lengthy legal battle.

Reference:Coinbase, complaint
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