Coinbase sues SEC

The Coinbase platform has asked the Third Circuit Court of Appeals to force the US Securities and Exchange Commission (SEC) to reconsider its request. This was stated by the company’s general counsel, Paul Grewal.

1/3 Promise made, promise kept: we are now on file with Third Circuit to challenge the SEC’s arbitrary and capricious denial of our petition for crypto rulemaking. We again appreciate the Court’s consideration.

— paulgrewal.eth (@iampaulgrewal) December 15, 2023

As a reminder, the regulator rejected Coinbase’s petition for rulemaking on December 15, 2023, more than a year and a half after it was filed. Commission Chairman Gary Gensler said he fully supports the decision.

According to him, the SEC is already in constant contact with crypto market participants, while the company’s petition will limit the agency’s freedom in determining the priorities for further supervision.

It is noteworthy that two members of the Commission’s council expressed disagreement with the regulator’s decision. Grewal thanked them for their assistance and encouraged them to take part in the formation of a regulatory framework that will not only protect the interests of investors, but will also promote the development of innovation.

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.

— paulgrewal.eth (@iampaulgrewal) December 15, 2023

Coinbase submitted its petition in the summer of 2022. In it, she demanded that the SEC clarify its powers in the crypto market, as well as create a new regulatory framework that would take into account the specifics of the sector.