US court orders SEC to respond to Coinbase complaint on crypto regulations
Coinbase seeks clarification on SEC's application of securities laws to crypto products
Fri, 05 May 2023, 13:18 pm UTC
A US court has directed the Securities and Exchange Commission (SEC) to respond to Coinbase's complaint regarding how it applies securities laws to digital assets. The Third Circuit Court of Appeals issued the order on Wednesday, stating that the SEC must file its response within 10 days.
Coinbase had argued that the SEC's regulatory guidance for US firms operating in the crypto sector was inadequate, stating that it must "at a minimum must set forth how those inapt and inappropriate requirements are to be adapted to digital assets."
The crypto exchange was attempting to launch a pre-emptive strike against the SEC, which had announced in March that it planned to sue the exchange for offering unregistered securities products.
Coinbase's complaint referred to a 2022 petition that called for formal rulemaking within the digital assets sector, to which the SEC had yet to respond.
The 10-day deadline ordered by the court refers to the SEC's requirement to provide a legal basis for why it has not responded to the petition.
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