Coinbase has been suing the SEC for failing to respond to a petition for the regulation of the cryptocurrency industry

Coinbase Compels SEC to Respond to Rulemaking Petition in New Lawsuit (Image credit- CoinMarketcap)

The well-known cryptocurrency exchange company founded by Brian Armstrong is suing the U.S. Securities and Exchange Commission (SEC) because it hasn't responded to its request for information regarding crypto rules for almost a year. In order to obtain "regulatory clarity" on the numerous regulations and restrictions in the cryptocurrency industry, which have a substantial impact on its operations as one of the biggest platforms currently in operation, Coinbase is bringing the fight to the SEC. In response to the SEC's refusal to react to Coinbase's petition on the regulation of digital assets like cryptocurrencies, Coinbase has filed a lawsuit as per the report. In July 2022, Coinbase petitioned the SEC, asking for clarification on whether current securities rule-making procedures could be applied to the cryptocurrency industry. Coinbase also urged the SEC to "propose and adopt rules to govern the regulation of securities that are offered and traded via digitally native methods." [caption id="" align="aligncenter" width="1200"] Image credit- Tech Crunch[/caption] According to Coinbase, the SEC has not responded to its petition, putting both the business and the larger crypto sector in legal limbo. Because of this, Coinbase has taken legal action by suing the SEC in an effort to force the regulator to respond. In a blog post, the company stressed the importance of regulatory clarity in the quickly changing cryptocurrency market, arguing that a lack of clear regulations has stifled innovation and created confusion. The SEC was asked by Coinbase to provide guidance on how current securities laws and regulations could be applied to digital assets and how businesses like Coinbase can comply with these laws. "Coinbase does not take any legal disputes lightly, particularly when they involve one of our regulators. For our industry, regulatory certainty is long needed. Even though we haven't been told how the SEC thinks the legislation relates to our business, Coinbase, and other cryptocurrency companies could face regulatory enforcement actions from the agency, according to Chief Legal Officer of Coinbase Paul Grewal. [caption id="" align="aligncenter" width="800"] Image credit- Watcher Guru[/caption] The public's interest in cryptocurrencies is growing significantly, and this calls for rules from a number of authorities, with the SEC at the center of it all to support both consumers and companies in having fair and reliable transactions in the sector. In order to further develop its regulations, the government has opened a new office for filing cryptocurrency-related documents. Due to alleged crypto infractions of its regulations, numerous inquiries and charges were initiated against various NFT developers, Marketplaces, and executives like Justin Sun from Tron. However, this led to ambiguous regulations that businesses had to abide by, which is why there were so many inquiries, grievances, and petitions submitted to the agency. Also read: Coinbase expands overseas amidst US regulatory pressure The SEC's legal battle with Coinbase serves as a reminder of how urgently clear regulations are needed in the Bitcoin sector. The company's dedication to regulatory compliance and its efforts to obtain advice from the SEC reflect the sector's willingness to conduct its future activities within a transparent and compliant environment.