Coinbase files petition in US federal courts demanding SEC response
The largest US cryptocurrency trading platform, Coinbase, takes legal action through federal courts to demand regulations from the SEC.
Late Monday evening, Coinbase, the largest US cryptocurrency trading platform, filed a petition to US federal courts, asking them to order the Securities and Exchange Commission to respond to its request for rules to regulate the industry. “More than 1,700 other organizations and individuals have submitted comments echoing that call for clarity,” the trading platform’s petition writes, “Coinbase has followed up repeatedly with more specific suggestions for the Commission to consider. To this day, the SEC has not responded.” The lawsuit is the latest blowback from increasingly frustrated US-based crypto firms that are demanding regulating clarity from Washington. Coinbase has been vocal about its grievances in the lack of governing clarity, taking to blog posts to say that while they asked for “reasonable rules for Americans,” they were issued a Wells Notice or warning of potential US securities law violations, in March. Some are even looking to switch operations elsewhere if progress isn’t made – as the case comes fresh off the heels of Coinbase's Brian Armstrong's comment that the crypto company would consider relocating if regulation is not announced at Fintech Week in London. A move that could be appealing as across the Atlantic, the European Parliament adopted an act that would regulate the cryptocurrency industry last Thursday, outpacing its American counterparts. While clear regulation has yet to emerge In the US market, others have decided to jump ship – last week Gemini said they would be closing their derivatives platform to open operations outside of the US. Bittrex, a Coinbase competitor, also is set to shift from the US by the end of April. But, the SEC has not let the crypto sphere out of its sights, charging Bittrex and its former CEO for violations, and slapping a $30m fine on Kraken, the second-largest US crypto exchange, among other battles, in the months following FTX's downfall. The regulating body also cautioned investors to exercise extreme caution with crypto securities last month, a factor contributing to crypto firm’s frustrations with the Washington body. Coinbase asked the courts to mandate that the SEC reply to its petition filed in July 2022 of last year. In light of “escalated enforcement efforts,” Coinbase wrote that they and the crypto industry have “an urgent right to a judicially reviewable decision.”