Coinbase seeks response from the SEC agency over July 2022 petition: Court Suit
Coinbase exchange filed a court suit to force the SEC agency to get a clear response over a Crypto-related petition which was filed by the Coinbase exchange in July 2022.
Coinbase exchange is an American publicly listed crypto exchange. The services of this crypto firm are available in several areas of the crypto industry. Coinbase provides services for retail crypto traders as well as Institutions.
In July 2022, Coinbase filed a petition. Through the petition, the Coinbase exchange asked 50 questions from the United States Securities and Exchange Commission (SEC). All the questions aim to get clarity on the crypto rules & regulations, which the SEC uses to categorize crypto assets as security. So far 9 months have been completed but the SEC agency failed to respond.
On 25 April 2023, Coinbase filed a narrow action in the US Circuit Court to compel the SEC to respond “yes or no”. In short, Coinbase wants to know whether the SEC agency will respond to the petition or not.
Coinbase CTO Paul Grewal said that the SEC agency also works under the laws and there is a provision to respond to petitions within a given time frame.
Further Coinbase CTO quoted a recent interview video of SEC chairman Gary Gensler and said that it is clear that the SEC agency is not open to talk about the clear rules to distinguish security & non-security crypto tokens.
Coinbase Vs SEC
In April 2021, Coinbase became a public crypto exchange. In late 2021, Coinbase CEO Brian Armstrong disclosed that everyone was excited to meet with the Coinbase exchange but the SEC body was not happy with that & also was not interested in the Coinbase exchange.
In March of this year, Coinbase received a Wells notice from the SEC agency over some listed crypto assets on the exchange and also on the crypto staking services.
In response, Coinbase executives confirmed that they approached the SEC agency to get clarity on the possible violation of any security laws by the exchange but they never responded or informed.
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