• Coinbase, a large digital currency trading platform, is suing the Securities and Exchange Commission (SEC) for failing to answer its petition for answers over applying traditional monetary markets to the crypto arena.
• The SEC recently sent Coinbase a Wells notice as an indication that the company could face legal charges soon, though it did not specify what these would be.
• Paul Grewal – Coinbase’s chief legal officer – said that regulatory clarity is overdue for the industry but companies are facing enforcement actions from the SEC even without knowing how the law applies to their business.
Coinbase Sues SEC
Coinbase, one of the biggest digital currency trading platforms out there, has taken action by filing a lawsuit against the Securities and Exchange Commission (SEC). This comes after months of waiting for an answer from them regarding how they justify applying decision-making processes regarding traditional monetary markets to the crypto arena.
Wells Notice From SEC
The SEC has been particularly nasty to Coinbase lately and recently went so far as to send it a Wells notice. Such a notice does not mean that the receiving company has been charged with a crime; instead it hints they should prepare from a legal standpoint given that they likely will be charged soon. Despite meeting with SEC regulators several times over nine years and ensuring compliance, Coinbase was still surprised by this notice.
Coinbase Seeks Answers
In response to this treatment from the SEC, Coinbase filed a petition asking them for answers many months before filing this lawsuit. However, despite patiently waiting for an answer they never received one – leading them to take further action in order to receive some resolution. Paul Grewal – Coinbase’s chief legal officer – said: “Regulatory clarity is overdue for our industry yet we have not been told how the SEC believes law applies to our business.“
Tired Of Bullying
It appears that Coinbase is tired of sitting around waiting for an answer from the agency and also tired of being bullied by them. By taking further action such as filing this lawsuit against them they are showing that they cannot be pushed around or abused any longer and hope to finally get some answers regarding their petition from months ago.
With Coinbase’s recent lawsuit against the SEC we can see just how much power large organizations have when it comes up against oppressive agencies such as these who try their best but ultimately fail in offering real solutions or clarity on matters like this one. Hopefully through their efforts something will come out of this case that other companies can learn from when dealing with similar issues in future situations!