Cryptocurrency exchange Coinbase is set to challenge the US Securities and Exchange Commission‘s (SEC) denial of its petition for new crypto regulation.
Despite the SEC rejecting Coinbase’s demands, the exchange’s Chief Legal Officer, Paul Grewal, announced on Twitter that they would challenge the decision in a court filing.
SEC Chairman Gary Gensler had earlier announced the denial of Coinbase’s petition, asserting that existing rules were sufficient.
Grewal emphasized the lack of clarity in the law and cited Gensler’s 2021 testimony and statements from the CFTC Chair.
Coinbase has been seeking regulatory clarity from the SEC, filing a narrow action in April to compel a response to its 2022 petition. The SEC has consistently denied Coinbase’s requests for clarity.
It asked the court to compel the agency to give a “yes or no” answer to the petition it filed in July 2022. The 2022 petition, which outlined a list of questions seeking clarity on the nature of securities and how the SEC goes about determining whether an asset is a security, went unanswered for nine months.
The securities agency previously denied Coinbase’s request for clarity and said it was under no obligation to meet the request of Coinbase’s petition and would not entertain its demands.
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