“Coinbase Demands Government Agency to Fulfill Duties, Claims SEC is Not Cooperating”
Coinbase, the biggest cryptocurrency exchange, has sued the US Securities and Exchange Commission (SEC) by filing a legal request called a writ of mandamus. This escalates their ongoing disagreement with the SEC. The lawsuit was filed due to the ongoing dispute about the need for clear rules and standards for the cryptocurrency industry in the United States. This has been a contentious issue for several months, resulting in Coinbase taking legal action.
Coinbase is taking legal action by filing a special request called a writ of mandamus because the SEC has not been responding to the company’s requests for clear rules and regulations, which Coinbase believes are unfounded. A writ of mandamus is a court petition that tells a government agency to do its job and fulfill its legal duties.
Also Read This Related: Coinbase Launches “Moving America Forward” National Campaign to Promote Cryptocurrency
The dispute persists regarding the matter of clarity:
Just like in previous cases where rules were proposed for digital assets, Coinbase’s submission highlighted that the SEC intends to keep enforcing regulations against the crypto industry. They focused on the exact issues raised by Coinbase’s petition but disregarded the petition itself.
Additionally, if the SEC chooses to reject Coinbase’s petition, they might be compelled to address the issue of regulating digital assets through a legal order called a mandamus. Coinbase claims that despite asking for clear rules and the court ordering the SEC to provide them, the SEC has been unhelpful and uncooperative.
Furthermore, the cryptocurrency exchange also pointed out that the SEC has flip-flopped on whether securities regulations apply to digital assets, especially in light of its recent enforcement actions. The big cryptocurrency company from California claims that the SEC has introduced new criteria that allow them to indefinitely initiate enforcement actions against the industry based on those standards.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.