In a bold move against the U.S. Securities and Exchange Commission’s (SEC) recent denial, Coinbase Chief Legal Officer Paul Grewal announced today the exchange’s intention to take the SEC to court once more. This comes as a response to the Commission’s refusal to clarify new crypto rules for the burgeoning digital assets industry.
Last year, Coinbase, the largest cryptocurrency exchange in the United States, submitted a petition to the SEC, seeking clarity and the establishment of new regulatory guidelines specifically tailored for digitally native securities. However, despite the exchange’s efforts, the SEC delayed its response, prompting Coinbase to petition the court in April to urge a definitive answer from the regulatory body.
After months of anticipation, the SEC finally responded—a flat-out denial. SEC Chair Gary Gensler stated, “The existing securities regime appropriately governs crypto asset securities,” in a statement issued on Friday.
Undeterred by this setback, Grewal took to social media platform X (formerly known as Twitter) to express Coinbase’s firm stance. “After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we’ll again seek its help by challenging the SEC’s abdication of its duty,” Grewal tweeted.
The stage is set for another legal confrontation between Coinbase and the SEC, as the exchange remains resolute in its pursuit of regulatory clarity and a defined framework for the evolving crypto landscape.