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 growing tension between the cryptocurrency industry and regulators, Coinbase has done so narrow suit in federal court to force the Securities and Exchange Commission to respond to its pending sentencing petition.
Coinbase requests an SEC response
the petition In question asks the Securities and Exchange Commission (SEC) to provide delayed guidance for the cryptocurrency industry, which has been grappling with a lack of clear regulations for years.
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Coinbase, along with other players in the industry, is pushing for regulatory clarity to ensure the long-term viability and growth of the crypto market.
Today, we filed a narrow lawsuit in US Circuit Court to force the Securities and Exchange Commission (SEC) to respond “yes or no” to a rule-making petition we submitted to them last July asking them to provide regulatory guidance for the cryptocurrency industry. 1/4 https://t.co/rlsS1DIFfl
– paulgrewal.eth (@iampaulgrewal) April 25, 2023
In a recent blog post, Coinbase stressed the importance of regulatory clarity for the industry. Its chief legal officer, Paul Grewal, claimed:Clear and reasonable regulation is essential to the long-term health and growth of the cryptocurrency industry. We believe it is time for the SEC to provide the guidance the industry has been seeking for years.”
The petition, which Coinbase filed in July 2022, asked the SEC to use the formal rulemaking process to provide guidance to the digital currency industry. However, so far, the SEC has not responded, leaving the industry in limbo. Coinbase believes the SEC has already made its decision to dismiss the petition but has not formally shared its decision with the public.
According to the announcement, Coinbase’s filing in federal court seeks to force the SEC to provide a simple yes-or-no response to the rulemaking petition. The Administrative Procedure Code requires the Securities and Exchange Commission to respond to such petitions within a reasonable time. If the answer is no, Coinbase will be allowed to challenge this decision in court and explain why the rules were requested to be released.
Paul Grewal highlighted the urgent need for a clear rulebook in the United States. The regulatory crackdown imposed by the Securities and Exchange Commission (SEC) on the cryptocurrency industry has blurred, delaying innovation, adoption, and growth in the country.
Paul Grewal also said:At Coinbase, we believe that crypto and blockchain technology has the potential to increase economic freedom and opportunity around the world. That’s why we’re working hard to help modernize the financial system by building trusted products that expand the usefulness and adoption of crypto.”
Coinbase is fighting on multiple fronts
Coinbase, in its ongoing efforts to seek regulatory clarity recently announce By tweeting that he offered two ways for the crypto community to express support for sensible cryptocurrency policies.
The first method is the “Stand With Crypto” commemorative NFT issue. This NFT features a blue shield that represents the collective platform to protect and enhance crypto potential. The second way to show support is to add a shield emoji, which symbolizes the industry’s commitment to protecting and enhancing the capabilities of cryptocurrency.
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In addition to the Stand With Crypto campaign, Coinbase launched #Crypto435 in Q1 2023, a campaign to grow the cryptocurrency advocacy community and share tools and resources. The campaign aims to empower the community to make their voices heard and advocate for sensible encryption policy.
Featured image from Unsplash, chart from TradingView.com