Coinbase Sues The Securities and Exchange Commission

Coinbase has filed a lawsuit to get the SEC to respond to a petition filed in July 2022.

The exchange based their appeal on the US Administrative Procedure Act, which requires the agency to respond within a “reasonable time.”

Coinbase asked the court to force the Commission to give a yes or no answer to the petition, which was supported by more than 1,700 legal entities and individuals.

Paul Grewal, Coinbase’s general counsel, has noted that if the response is positive, the rule-making process will begin, which will provide signals to industry participants regarding the legality of their activities.

In the event of a refusal, the company will have the opportunity to challenge the department’s decision in court.

Grewal has also stressed that the company considers the regulation of cryptocurrencies necessary in order to provide clarity to the industry.