The leading crypto exchange Coinbase filed a narrow action in the US Circuit Court as another formal step towards seeking the court’s response to the company’s petition that remains unanswered since July. Paul Grewal, the Chief Legal Officer of Coinbase asserted that the action intends to compel the security regulator to answer their rulemaking petition, which has been focused on providing regulatory guidance for the crypto industry, with a “yes or no”.
Subsequent to the action, the lawyer shared a string of tweets, presenting a detailed sketch of the company’s recent move. He commented that the SEC is required to respond to their petition “within a reasonable time”:
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
Previously, in July 2022, Coinbase filed a petition requesting the US Securities and Exchange Commission (SEC) to adopt stringent and clearer regulatory rules for the crypto industry in the country.
The petition claimed that if the SEC introduces new rules, it would allow “more efficient and effective allocation of capital in financial markets and create new opportunities for investors”.
Significantly, Grewal reiterated that the action requires the SEC to share its decision regarding the petition, quoting:
It seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision.
In addition, Grewal, referring to SEC Chair Gary Gensler’s abrupt categorization of crypto assets as securities, commented that “there is a lack of clarity” among the regulators regarding crypto.
Further, the legal officer pointed out the basic necessity of clear rules in the industry, stating that new rules should be “built for a new technology”.
