Coinbase files court action to compel SEC’s response to rulemaking petition

Regulation

Coinbase filed a narrow action in a United States federal court that seeks to compel the Securities and Exchange Commission (SEC) to provide a “yes or no” response to a July 2022 petition.

The petition requested the SEC propose and adopt clearer regulatory guidelines for the cryptocurrency industry in the U.S. 

In the exchange’s July 2022 petition, it asked the financial regulator to answer a total of 50 specific questions concerning the regulatory treatment of certain digital assets.

According to an accompanying April 24 blog post penned by Coinbase Chief Legal Officer Paul Grewal the Administrative Procedure Act requires the SEC to respond to the exchange’s rulemaking petition “within a reasonable time.”

Now that more than nine months have passed with no response, the exchange is pushing hard to get an answer:

“It seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision.”

“It’s important for the SEC and any other agency petitioned for rulemaking to respond to the petition once the agency has made up its mind, especially if the answer is no,” Grewal added.

This is a developing story, and further information will be added as it becomes available.