Cryptocurrency exchange Coinbase has taken action against the United States Securities and Exchange Commission (SEC) in a federal court.
Coinbase is seeking to compel the financial regulator to provide a response to a petition that the exchange has had pending since July. The petition requested the SEC to propose and adopt clearer regulatory guidelines for the cryptocurrency industry in the U.S.
In the petition, Coinbase asked the SEC to answer 50 specific questions concerning the regulatory treatment of digital assets.
The exchange is pushing to get an answer from the SEC, as more than nine months have passed with no response. Coinbase’s Chief Legal Officer, Paul Grewal, stated that the Administrative Procedure Act requires the SEC to respond to the exchange’s rulemaking petition “within a reasonable time.”
The cryptocurrency industry is in dire need of clarity on regulatory matters. On March 22, Coinbase received a Wells notice, hinting at potential enforcement actions against the exchange.
Grewal explained that clarity is of the utmost importance, especially considering that Coinbase and other crypto companies are facing potential regulatory enforcement actions from the SEC. The lack of clarity and regulatory framework is causing uncertainty and fear amongst market players.
Kraken, another cryptocurrency exchange, reached a settlement with the SEC in February for “failing to register the offer and sale of their crypto asset staking-as-a-service program.”
The exchange agreed to cease operations of its staking-as-a-service program for U.S. customers and paid a $30 million fine.
The move proved unpopular, with SEC Commissioner Hester Peirce labeling the SEC’s conduct as “not an efficient or fair way of regulating.” Peirce slammed her own agency for shutting down a “program that has served people well.”
