In April, Coinbase filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) in an attempt to compel the agency to provide clear guidance on crypto assets. Specifically, Coinbase requested the SEC to define when a digital asset is considered a security and establish a new market structure for cryptocurrencies. According to Coinbase, it had been waiting for nine months for a response to its petition for rulemaking. The lack of transparency and guidance from the SEC has been detrimental to Coinbase’s business and its customers, who may face enforcement actions without a clear understanding of how the law applies to them.
Coinbase originally filed its petition for rulemaking in July 2022. However, the SEC has not commented publicly on Coinbase’s petition or investigation. Coinbase filed its legal challenge regarding the SEC’s lack of response with the US Court of Appeals for the Third Circuit on April 24th. The court has now instructed the SEC to respond to Coinbase’s petition within the next ten days.