Crypto exchange Coinbase has filed a lawsuit against the SEC following the denial of transparent crypto regulation. The US Securities and Exchange Commission officially denied Coinbase’s petition request for more transparent crypto rules and regulations earlier Friday.
Paul Grewal, Coinbase’s Chief Legal Officer, shared the opening of the lawsuit on X. “Promise made, promise kept,” Grewal says in the post. “We are now on file with Third Circuit to challenge the SEC’s arbitrary and capricious denial of our petition for crypto rulemaking.”
Throughout the last two years, the cryptocurrency sector has been vocal in its request for crypto-specific regulations in the United States. The SEC has been crucial in denying this, thus companies involved in the industry have been faced with enforcement-focused regulation. In the lawsuit, Coinbase alleges abuse of discretion, as well as violation of the Administrative Procedure Act.
Also Read: Coinbase: U.S. SEC Gains Amicus Brief Support in Lawsuit
The SEC has yet to comment on the new lawsuit by Coinbase. This past summer, the SEC also filed a lawsuit against Coinbase accusing the company of selling unregistered securities and operating as an unregistered securities exchange. SEC Chair Gary Gensler stated Congressional creation of securities laws was to govern investments, “in whatever form they are made and by whatever name they are called.”