American public crypto exchange Coinbase sued the US Securities and Exchange Commission (SEC) on Monday, demanding regulatory clarity after months of silence from the watchdog.
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In a blog post, Coinbase Chief Legal Officer, Paul Grewal, said the exchange wants to hear from the SEC one thing: whether it can or can't provide overdue guidance for the crypto industry. In July 2022, Coinbase asked the regulator to whether propose or adopt rules to "govern the regulation of securities that are offered and traded via digitally native methods."
Coinbase notes so far over 1,700 entities and individuals supported its call for regulatory clarity. However, the SEC made no response to the petition.
Grewal says the watchdog has apparently "made up its mind to deny our petition" given the SEC's public statements and enforcement activity in the crypto industry. He acknowledged that bringing a regulatory body to a court for a public comment "is usually not needed." However, it is also unusual for an agency to bring enforcement actions based on a view of the law that it "has not yet shared formally with the public," Grewal emphasized.
As of press time, the SEC made no public response on the matter.
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