The July 2022 petition asked that the SEC put forward and adopt rules to govern securities’ regulation that are provided and traded in digital ways, referring to digital assets such as crypto currencies

Crypto currency exchange Coinbase filed suit against the US Securities and Exchange Commission (SEC) on Monday, asking that the regulator be compelled to publicly share its reply to a months-old petition on whether it would permit the crypto industry to be regulated using current Securities and Exchange Commission market frameworks.

The July 2022 petition asked that the Securities and Exchange Commission put forward and adopt rules to govern securities’ regulation that are provided and traded in digital ways, referring to digital assets such as crypto currencies.

The Securities and Exchange Commission did not provide a specific public reply to Coinbase’s petition, however in recent months has firmly stepped up enforcement actions and cautions against crypto exchanges, including Coinbase.

From the public statements of the Securities and Exchange Commission and enforcement activity in the crypto industry, it appears that the Securities and Exchange Commission has already made up its mind to reject our petition. But they have not informed the public so far. So the action Coinbase filed today merely asks the court to ask the Securities and Exchange Commission to share its decision, Coinbase chief legal officer Paul Grewal said in a blog post.

Since January, the Securities and Exchange Commission has taken action against crypto exchanges Bittrex & Gemini, crypto lender Genesis, and several individual actors accused of influencing crypto assets, including crypto trader Justin Sun and Terraform Labs founder Do Kwon.

The move is Coinbase’s first formal move against the regulator, just more than a month after it was cautioned by the Securities and Exchange Commission of pending legal action via a Wells notice.

Coinbase does not take any litigation lightly, particularly when it pertains to one of our regulators. Regulatory clarity is overdue for our industry, Grewal stated in the blog post. Still Coinbase as well as other crypto firms are facing potential regulatory enforcement actions from the Securities and Exchange Commission, even though we have not been informed how the Securities and Exchange Commission believes the law applies to our business.