Coinbase‘s Chief Legal Officer Paul Grewal has displayed a resolved stance in the legal battle with the U.S. Securities and Exchange Commission (SEC), clarifying the cryptocurrency exchange’s intention to challenge the SEC in court. This step was taken after SEC rejected Coinbase’s request for regulatory clarity, intensifying legal conflicts between the two entities.
Since April, SEC and Coinbase have been involved in several legal disputes, including a lawsuit filed by the SEC against Coinbase in June. The SEC alleges that Coinbase operates as an unregistered exchange and has conducted unregistered securities sales. Coinbase initiated the legal process seeking regulatory clarity, but has been repeatedly rejected by the SEC.
Coinbase’s latest legal move comes after the SEC continuously refused requests for regulatory clarity. The SEC responded to a petition filed in July 2022, 18 months later. The SEC’s delayed approach led Coinbase to seek judicial intervention.
SEC Chairman Gary Gensler disagreed with Coinbase’s petition, citing the ongoing evaluation of the regulatory regime as an excuse. Grewal, however, is insistent that the cryptocurrency industry lacks regulatory clarity.
Grewal challenged the SEC Chairman’s previous statement that there was no authority governing cryptocurrency exchanges, pointing out uncertainties among regulatory bodies. This dispute reflects a broader industry issue that debates the need for clearer regulatory frameworks.