Crypto exchange Coinbase has filed an Administrative Procedure Act challenge against the U.S. Securities and Exchange Commission (SEC), asking a federal court to force the regulator to respond to a petition for formal rulemaking in the digital assets sector. The petition, filed last year, seeks regulatory clarity around how existing securities laws might apply to digital assets.
The move comes after the SEC warned Coinbase last month that it expected to sue the exchange over allegations of listing and offering unregistered securities products. Coinbase is expected to respond to these specific allegations by the end of April.
Coinbase's filing on Monday is a preemptive action, arguing that the SEC's approach to digital assets is unclear and requires formal rulemaking to provide necessary guidance for the industry.
According to an accompanying April 24 blog post penned by Coinbase Chief Legal Officer Paul Grewal, the Administrative Procedure Act requires the SEC to respond to the exchange’s rulemaking petition “within a reasonable time.”
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Policy and Regulation