Coinbase Sues SEC To Force It To Craft Rules On Digital Assets

Crypto trading platform Coinbase said it had filed a petition to a US appeals court that would order the Securities and Exchange Commission (SEC) to respond to a plea the company made last year for formal rule-making on digital assets.

Photo Insert: Coinbase said it didn’t expect the court to tell the SEC how to respond but only to give it a yes-or-no answer on its July petition.

Last July, it asked the agency to make new rules for crypto, Joe Light and Rupert Steiner reported for Barron’s Daily.

Coinbase said it didn’t expect the court to tell the SEC how to respond but only to give it a yes-or-no answer on its July petition. It claimed SEC needs to engage in rule-making to clarify how existing securities laws apply to tokens.

SEC Chairman Gary Gensler, for his part, has said the rules already are clear and that exchanges such as Coinbase need to comply with them or face lawsuits.

Funds operated by Cathie Wood’s ARK Invest snapped up more stock in Coinbase, a Monday email update from the investment-management firm showed. Three different funds bought a combined 157,043 shares worth $8.6 million, based on Monday’s closing price of $54.75 a share.

The court filing is the latest salvo in a brewing legal battle that looks increasingly important—not only to Coinbase’s own profitability but also to the future of the industry in the US.

The trading platform’s executives say a response from the SEC overregulation is important since a “no” would allow it to challenge the regulatory body’s decision in court.

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