Coinbase sues SEC to regulate crypto. In a blog post on Monday, Coinbase Global Inc. (COIN.O) petitioned the U.S. Securities and Exchange Commission to adopt new digital asset laws, escalating its spat with the agency.
Coinbase petitioned the SEC last year to clarify whether a digital asset is a security and build a cryptocurrency-friendly market structure framework.
In the blog post, Coinbase Chief Legal Officer Paul Grewal claimed the SEC has not publicly responded to that petition, prompting the legal challenge.
“Coinbase and other crypto companies are facing potential regulatory enforcement actions from the SEC, even though we have not been told how the SEC believes the law applies to our business,” said Grewal.
The Third Circuit Court of Appeals will receive the petition.
The crypto business argues it works in a regulatory gray area unregulated by U.S. securities rules and needs new legislation.
SEC Chair Gary Gensler believes bitcoin businesses should follow existing rules and not need additional crypto-specific regulations.
Coinbase said in March that SEC officials had advised enforcement action against the business. However, the corporation stated in a blog post that it would defend any enforcement action in court.
Coinbase acknowledged an SEC investigation into its asset listing, staking, and yield-generating businesses in July when it submitted its regulation petition.
