The arrival of crypto winter has increased the demand for crypto regulations, but nothing substantial has been done thus far. SEC – Security Exchange Commission – is still not clear about the rules, which has pushed many cryptocurrency exchanges, including Coinbase, to question what their future might be.<\/p>\n
But Coinbase has no intention of stopping any longer. Intending to force a resolution, Coinbase has filed an action against the commission in a United States Federal Court. The exchange’s request is a simple “yes or no” answer to the petition it filed in July 2022.<\/p>\n
It has already been noted that the Security Exchange Commission is not a big fan of cryptocurrencies and has been taking regressive measures that many say are a”halt the progress of cryptos” while proposing more regulations.<\/p>\n
The result of this dichotomy is no clear regulation, and the entire cryptocurrency space is paying for it.<\/p>\n
But in July 2022, shortly after the fall of LUNA and the arrival of crypto winter that continues to persist to this day, Coinbase petitioned and asked 50 specific questions regarding how certain assets are to be treated per regulations.<\/p>\n
The questions were broad. But one of them was very specific since it harkens back to what the Security Exchange Commission has been trying to treat cryptocurrencies as – securities.<\/p>\n
The question was about the basis on which the Commission classifies tokens as securities.<\/p>\n
However, there has been no answer till now. SEC has not been able to provide any answer “within reasonable time”, according to Paul Grewal, Chief Legal Officer at Coinbase, and he has filed a court action against the commission. He has detailed it more in his recent tweet.<\/p>\n
\nToday, we filed a narrow action in the U.S. Circuit Court to compel the SEC to respond \u201cyes or no\u201d to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1\/4 https:\/\/t.co\/rlsS1DIFfl<\/a><\/p>\n
— paulgrewal.eth (@iampaulgrewal) April 25, 2023<\/a><\/p><\/blockquote>\n