The document submitted by Coinbase stated, “Coinbase does not ask the Court to instruct the agency how to respond. It simply requests that the Court order the SEC to respond at all.”
Crypto exchange Coinbase asked the US Court of Appeals for the Third Circuit to urge the SEC to respond to its rulemaking petition weeks after receiving a Wells notice from the regulatory agency.
In 2022, Coinbase filed a rulemaking petition with the SEC. Referring to the lack of regulatory clarity in the US, Coinbase’s petition posed some key questions and suggestions to the SEC to establish a framework for enforcing crypto rules and regulations.
However, the SEC did not respond to Coinbase for over nine months since the latter published its rulemaking petition. The exchange added,
“Yet more than nine months (and counting) after Coinbase submitted its original petition, the SEC still has taken no action on Coinbase’s petition or provided any feedback on Coinbase’s proposals. Instead, it has ramped up efforts to regulate retrospectively by bringing enforcement actions.”
As a result, Coinbase has filed a narrow action lawsuit with the federal court to force a response from the SEC.
In the official document, Coinbase accused the regulatory agency of adopting a hostile stance towards crypto platforms. Coinbase further claimed that the SEC attempted to intimidate the firm by issuing a Wells notice for failing to register with the Commission.
As noted by the firm’s Chief Legal Officer Paul Grewal, the Administrative Procedure Act will mandate the SEC to answer Coinbase’s request “within reasonable time.” Coinbase expects the SEC to issue a response to its rulemaking petition within seven days.
The news came less than a week after Coinbase’s CEO Brian Armstrong praised the UK’s regulatory policies. When questioned about Coinbase’s plans amidst regulatory crackdown in the US, Armstrong claimed that they may consider relocating out of the nation.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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