In a significant development, Coinbase’s Chief Legal Officer Paul Grewal announced Friday that the exchange intends to appeal the Securities and Exchange Commission’s (SEC) denial of its request for new crypto asset regulation. The SEC’s decision came after 18 months of silence, prompting the Coinbase exchange to seek legal intervention to address what it viewed as an unfair rejection.
SEC rejects Coinbase request
In a move deemed “unfair” by the SEC, Coinbase’s request for the new rule was officially rejected earlier the same day. The rejection marked the culmination of a long battle between Coinbase and the regulator that stretches back to 2022, when the exchange first sought new regulatory measures. Grewal expressed dissatisfaction with the SEC’s decision and highlighted the disagreement of Republican SEC Commissioners Hester Peirce and Mark Uyeda.
Grewal used X to share the news. “Today, the SEC denied Coinbase’s petition regarding crypto rules.” said. He emphasized the necessity of legal process. “After 18 months of silence, we went to court to get the answer required by law.” said. Despite the denial, Grewal emphasized the importance of constructive dialogue between regulators and the crypto industry. He acknowledged dissenting voices within the SEC. “We are grateful that two Commission members disagreed with the denial and called for genuine dialogue,” he said.
Appeal from SEC’s decision
Later Friday, Coinbase took further steps by filing a petition for review with the U.S. Court of Appeals for the Third Circuit. The move demonstrates the exchange’s determination to appeal the SEC’s denial and seek a legal review of the appropriateness of the regulator’s decision. “Coinbase’s mandatory petition thus achieved its stated purpose of compelling the SEC to act upon Coinbase’s rulemaking request,” the filing said. The statement was included.
Coinbase claims that the SEC’s formal rejection paved the way for a judicial review that had previously been blocked by the regulator’s inaction. The exchange emphasizes the need for clarity and collaboration in creating regulations that will benefit consumers and encourage innovation in the United States. While Coinbase is exploring legal avenues to challenge the SEC’s rejection, the crypto industry is watching the matter closely, aware of the broader implications on regulatory frameworks. The conflict between Coinbase and the SEC underscores the ongoing challenges in aligning regulatory approaches with the rapidly evolving crypto landscape.
No comment from SEC
The SEC has yet to comment on Coinbase’s new lawsuit, but Coinbase’s move signals a pivotal moment in the ongoing debate over cryptocurrency regulation in the United States. This case could potentially set a precedent for how crypto assets are regulated and impact the future course of the crypto industry.
As a result, Coinbase’s lawsuit against the SEC is a significant development in the ongoing saga of cryptocurrency regulation. This reflects the industry’s increasingly assertiveness in seeking clarity and fairness in regulatory practices. As the legal battle progresses, it will be watched closely by industry participants, regulators, and investors, as it could have far-reaching implications for the future of cryptocurrency in the United States and beyond. The outcome of this case could either pave the way for further innovation and growth in the industry or further reinforce the challenges and uncertainties that have long plagued the crypto industry.
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