Coinbase files new lawsuit against the SEC

SEC does not intend to participate in creating the regulatory framework for digital assets and will ignore Coinbase’s motion if the court does not grant it. This is stated in the new petition by the bitcoin exchange.

On April 25, 2023, the exchange filed a lawsuit, seeking a response from the SEC to the July 2022 request. The company called for clarity in regulating the crypto industry.

The exchange took aggressive steps after receiving a notice about an investigation into the listing procedures on the platform and its products — Coinbase Prime, Coinbase Wallet, and staking service Coinbase Earn.

The SEC called the firm’s claims “baseless.” Officials noted that the agency is not obliged to issue new rules, and the company “has no right to sue the regulator.”

In the new petition, the platform’s representatives argued that the Commission has already decided to deny its request for new rules, while its prior filing remains justified.

“The words and actions of the SEC and its chair leave no doubt about the agency’s plans. The enforcement actions against Coinbase suggest that the Commission regards securities laws as clear and workable with respect to digital assets and that no further rulemaking is required,” — said in the document.

The exchange’s position before the Third Circuit Court of Appeals is laid out in 23 pages.

The filing is in Mandamus — a writ directing an official or other person to perform actions required by law. It is used in “extraordinary circumstances.” Coinbase intends to obtain a concrete answer from the Commission regarding the development of rules governing cryptocurrencies.

Earlier, Coinbase CEO Brian Armstrong said that the SEC had gone on a “crusade” against the digital asset industry.

In May, the U.S. Chamber of Commerce voiced support for Coinbase and accused the regulator of “deliberately creating a dangerous and uncertain environment” for crypto companies in the country.

Subsequently, the trading platform began a TV campaign to lobby for the industry.