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The issue of unclear guidelines has been a major concern for many other crypto firms in the United States.
Coinbase has attempted to force the hands of the Securities and Exchange Commission (SEC) by filing a court action against the regulator. According to the exchange, it has filed a petition against SEC since last July, asking the securities regulator to provide regulatory clarity and offer guidance for US-based crypto firms. However, 9 months later, the SEC may have failed to dignify the petition, even with any response at all.
When Coinbase filed the petition, it asked a total of 50 specific questions from the financial regulator. But the SEC is yet to respond to any, even though a simple “yes or no” would have been enough to answer each.
To this end, Coinbase has now filed an Administrative Procedure Act challenge against the SEC. And with that move, it is asking the Third Circuit Court of Appeals to order the SEC to provide the much-needed “regulatory clarity.”
It is also worth mentioning that there has been an age-long debate on whether or not, securities laws should apply to the digital asset sector. And while SEC must have taken a stance on the subject, its decision remains unclear to the public.
Speaking about the new court action in a blog post, Coinbase Chief Legal Officer Paul Grewal, says the new action is expected to draw the response that everyone has been waiting to hear. He added:
“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.”
Coinbase, Others Say Regulatory Clarity Is Major Concern in the US
For what it’s worth, the grievances of Coinbase may be linked to the Wells notice it received recently. But while that signals a potential enforcement action against it, the issue of unclear guidelines has been a major concern for many other crypto firms in the United States. In line with this, Grewal added:
“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.”
Recent actions of the SEC have also raised concerns about what the regulator is really after. Many argue that the agency might be more concerned with a “show of power” rather than the protection of public interest.
Overall, the US is gradually becoming as hostile as it gets toward crypto. That is considering the slew of actions against the sector in recent times. And as a response, crypto firms including Coinbase are beginning to shift their operational bases. Recall that Coinspeaker earlier reported that the exchange has secured a license that will allow it to operate in Bermuda. And later this week, expectations are that it will launch a derivatives exchange there.