Last updated on May 18th, 2024 at 12:29 pm
Coinbase lawsuit against SEC – On April 25, Coinbase, the most popular exchange in the U.S. filed legal action against the SEC. The lawsuit against the regulatory body is to seek clarity on crypto regulations in the country.
The news which caused jubilation among the XRP community marks a major support for the Ripple vs SEC case. This lawsuit comes following a petition for rulemaking that was filed by the exchange against the SEC in July 2022.
However, the new action does not force the Security and Exchange Commission to obey the petition. Instead, if successful, it will force the SEC to either accept or reject the petition.
Today, we filed a narrow action in the U.S. Circuit Court to compel the SEC to respond “yes or no” to a rulemaking petition we filed with them last July asking them to provide regulatory guidance for the crypto industry. 1/4 https://t.co/rlsS1DIFfl
— paulgrewal.eth (@iampaulgrewal) April 25, 2023
According to Coinbase, the exchange commission is necessary for the SEC to attend to petitions within a stipulated time. Coinbase further claimed that the SEC is likely to reject its request and also that the regulatory body has not made any statement regarding that.
Recall that back in March, the SEC filed a Wells notice against Coinbase. For context, a Wells notice is a formal warning from the SEC that informs the recipient of a possible legal action against them.
Coinbase plans to meet the exchange commission in court if it eventually decides to file action. Coinbase further asserts that the SEC must make a statement regarding the matter so that the crypto community (including itself) can question some of the policies. The exchange giant requires the SEC to give an answer even if it is a “no.”
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Brian Armstrong Meets with the SEC
CEO of Coinbase, Brian Armstrong recently tweeted that he and his staff met with the SEC. He further stated that his company will “continue pushing for a clear rule book.”
Met with the SEC today. We’ll continue pushing for a clear rule book in the U.S. for crypto regs.
The U.S. can’t afford to fall behind on this important technology to update the financial system.
Also important for regulators to set policy and THEN enforce it. Not start with… pic.twitter.com/EaPD7wDbSx
— Brian Armstrong (@brian_armstrong) April 21, 2023
Also, Brian and his team also met with Congress Members before the appointment to discuss the SEC overreach as well as other related regulatory issues. Recently, many cryptocurrency exchanges have been targeted by the SEC including Kraken, Bittrex, and Ripple.
In other developments, SEC chair Gary Gensler faced the House Financial Services Committee in a congressional hearing last week where he was criticized for his agency’s “harsh treatment” towards the crypto industry.
Effect on the XRP Community
The legal action against the SEC has been praised among the crypto community, particularly the XRP supporters. XRP enthusiasts have taken to their Twitter pages to celebrate the outcome.
Attorney Jeremy Hogan amongst others joined the XRP community to applaud the move by Conbase. In his tweet, he reacted by saying “The best form of defense is a good offense.”
The best defense is a good offense.
Coinbase v. SEC
Apparently, Coinbase wasn't going to just sit around and wait for the inevitable lawsuit from the SEC. https://t.co/65gZnYJGqr
— Jeremy Hogan (@attorneyjeremy1) April 25, 2023
