Cryptocurrency exchange Coinbase Global Inc. COIN requested a federal court compel the U.S. Securities and Exchange Commission (SEC) to address a petition submitted last year that called for official rulemaking within the digital assets industry.
In an Administrative Procedure Act challenge against the SEC, Coinbase appealed to the Third Circuit Court of Appeals on Monday to mandate the provision of "regulatory clarity" regarding the application of existing securities laws to the digital asset sector.
Last month, the SEC cautioned Coinbase that it anticipated initiating legal action against the exchange for allegedly listing and offering unregistered securities products.
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Coinbase is expected to reply to these specific accusations by the end of April.
Monday's submission serves as a proactive measure by Coinbase to contest the SEC's approach, which they argue does not offer adequate regulatory guidance for U.S. firms involved in the crypto space.
The filing stated, "It is widely recognized — including by a sitting SEC Commissioner — that existing SEC registration and disclosure requirements are incompatible with digital assets, which differ fundamentally from the stocks, bonds, and investment contracts for which the securities laws were designed and that the SEC traditionally has regulated. The SEC at a minimum must set forth how those inapt and inapposite requirements are to be adapted to digital assets. But the SEC has refused to do even that."
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