Coinbase vs. the SEC: Will their legal battle make it clear how other cryptocurrency companies should be regulated?

Coinbase has petitioned the SEC for guidance on how to operate in the crypto industry. The SEC is required by law to respond to Coinbase’s petition within a reasonable time frame, but has failed to do so. Coinbase’s lawsuit simply asks the court to ask the SEC to share its decision. Over 1,700 entities and individuals have submitted comments in support of Coinbase’s request for clarity.

In its petition, Coinbase identified several areas that the rulemaking should encompass, including: identification of which digital assets are securities; registration of issuers, exemptions, and mandatory disclosures; and registration of exchanges.

Since the SEC has taken legal action against a number of crypto companies and there is a lot of uncertainty about licensing requirements and securities laws, it made sense to ask for clear guidance.

Coinbase press release:

https://www.coinbase.com/blog/coinbase-takes-another-formal-step-to-seek-regulatory-clarity-from-sec-for

Coinbase’s petition:

https://drive.google.com/file/d/1dyJhMA_FsHIGDB_BTwemjKahAg9k_U18/view?usp=share_link