Coinbase, one of the largest cryptocurrency exchanges in the world, has taken another step to seek regulatory clarity from the US Securities and Exchange Commission (SEC). In a move that highlights the increasing tension between the crypto industry and regulators, Coinbase has filed a narrow action in federal court to compel the SEC to respond to its pending rulemaking petition.
Coinbase Demands SEC Response
The petition in question asks the SEC to provide overdue guidance for the crypto industry, which has been grappling with a lack of clear regulations for years.
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Coinbase, along with other industry players, has been pushing for regulatory clarity to ensure the long-term viability and growth of the crypto market.
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 a recent blog post, Coinbase emphasized the importance of regulatory clarity for the industry. Its Chief Legal Officer Paul Grewal claimed “Clear, sensible regulation is necessary for the long-term health and growth of the crypto industry. We believe it’s time for the SEC to provide the guidance the industry has been seeking for years.”
The petition, which was submitted by Coinbase in July 2022, requested that the SEC use its formal rulemaking process to provide guidance for the crypto industry. However, to date, the SEC has not responded, leaving the industry in a state of uncertainty. Coinbase believes that the SEC has already made up its mind to deny the petition but has not formally shared its decision with the public.
According to the announcement, Coinbase’s filing in federal court seeks to compel the SEC to provide a simple yes or no response to the rulemaking petition. The Administrative Procedure Act requires the SEC to respond to such petitions within a reasonable time. If the answer is no, Coinbase would be allowed to challenge that decision in court and explain why rulemaking is required.
Paul Grewal has highlighted the crucial need for a clear rule book in the US. The SEC’s regulatory crackdown on the crypto industry has caused a lack of clarity, which has resulted in delayed innovation, adoption, and growth in the country.
Paul Grewal further said that “At Coinbase, we believe crypto and blockchain technology has the ability to increase economic freedom and opportunity around the world. That’s why we’re working hard to help update the financial system by building trusted products that expand the utility and adoption of crypto.”
Coinbase Fights On Multiple Fronts
Coinbase, in its ongoing efforts to seek regulatory clarity, recently announced via a tweet that it has introduced two ways for the crypto community to express its support for sensible cryptocurrency policies.
The first way is to mint a “Stand With Crypto” commemorative NFT. This NFT features a blue shield, representing the collective stand to protect and promote the potential of crypto. The second way to show support is to add a shield emoji, which symbolizes the industry’s commitment to protecting and promoting the potential of crypto.
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In addition to the Stand With Crypto campaign, Coinbase launched #Crypto435 in Q1 2023, a campaign to grow the crypto advocacy community and share tools and resources. The campaign aims to empower the community to make their voices heard and advocate for sensible crypto policy.
Featured image from Unsplash, chart from TradingView.com