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Crypto exchange Coinbase said it would challenge the US Securities and Exchange Commission’s (SEC) denial of its petition calling for new crypto regulation. On Friday, the SEC said it will not entertain Coinbase’s demands.
Cryptocurrency exchange Coinbase is not backing down from its plan. In a thread on X (formerly Twitter), Coinbase Chief Legal Officer Paul Grewal said the company would challenge the SEC decision in a court filing on Friday.
Coinbase Is Not Taking ‘No’ for An Answer
In a December 15 statement, SEC Chairman Gary Gensler announced the agency denied Coinbase’s petition for new crypto regulation. Gensler vehemently agreed with the agency’s decision, arguing that existing rules are in place and sufficient.
In his post, Grewal said:
“Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC’s abdication of its duty.”
Grewal continued stating the law is certainly not clear and cited Gary Gensler's 2021 testimony in which he declared that there are “regulatory authorities applicable to the cryptocurrency exchanges.” Coinbase’s chief legal expert also noted a statement made by the CFTC Chair, which said “that under existing law, many of the tokens constitute commodities.”
Mr Grewal concluded his thread by saying:
“We’re grateful that two Commissioners disagreed with the denial and called for real dialogue. We should be working together to create laws and rules that will benefit consumers and US innovation, not defending lawsuits based on legal positions that change month after month.”
Never-Ending Call for Clarity
Coinbase has long been at arms with the securities agency. The exchange repeatedly requested the SEC provide regulatory clarity, but its request was met with silence and denial. Coinbase filed a narrow action against the SEC in April, compelling the agency to give a “yes or no” answer to the petition it filed in July 2022. The 2022 petition, which outlined a list of questions seeking clarity on the nature of securities and how the SEC goes about determining whether an asset is a security, went unanswered for nine months.
The securities agency previously denied Coinbase’s request for clarity and said it was under no obligation to meet the request of Coinbase’s petition and would not entertain its demands.
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