Legal tensions between Coinbase and the US Securities and Exchange Commission (SEC), crypto- It is gaining more attention as the stock market accuses the SEC of regulatory uncertainty and arbitrary practices.
Coinbase Challenges SEC Denial
Leading crypto exchange Coinbase has escalated its legal dispute with the SEC by filing an opening brief with the Third Circuit Court of Appeals. The move aims to challenge the SEC’s rejection of Coinbase’s crypto-specific rulemaking petition and encourage the initiation of a comprehensive regulatory process.
The lawyers presented this way,
The SEC lacks the legal authority to extend the current securities regime to digital assets. However, if the SEC insists on moving forward without congressional authority, that decision must be made and implemented through prospective rulemaking.
NEWS CONTINUES BELOW
In its filing, Coinbase accuses the SEC of violating the Administrative Procedures Act by denying the exchange’s petition without providing sufficient justification. The exchange argues that the SEC’s actions demand compliance with vague securities laws without providing clear guidelines or a path for compliance.
Lack of Regulatory Clarity
Lawyers representing Coinbase argue that the SEC’s enforcement actions lack a consistent regulatory framework for digital assets. They argue that the absence of specific regulations overburdens crypto firms and forces them to comply with undefined rules.
Coinbase claims that the SEC’s refusal to impose rules further exacerbates the uncertainty surrounding regulatory compliance in the crypto industry.
Coinbase’s application is as follows,
The SEC is demanding that the industry comply with securities law requirements that are unenforceable, inappropriate, and still evolving, or it will join many companies currently facing sanctions, including Coinbase. But the SEC refuses to provide the rulemaking necessary to set stable standards, demonstrate how it believes compliance with these unrelated requirements is possible, and provide a path to do so.
Legal Struggle Continues
The legal conflict between Coinbase and the SEC began when Coinbase requested guidance from the SEC in July 2022. After the SEC denied Coinbase’s petition in December, the exchange took legal action and filed a final appeal with the Third Circuit Court of Appeals.
The SEC denied Coinbase’s petition, arguing that current financial regulations adequately cover crypto assets. Despite the criticism, SEC Chairman Gary Gensler defended the SEC’s stance by emphasizing its discretion in setting regulatory priorities.
Coinbase’s legal battle with the SEC, regulatory authorities crypto- It highlights the growing tension between companies.
