Cryptocurrencies, blockchain, NFT and new trends

Coinbase Legal Chief Takes Preemptive Strike with Precedent Against US SEC

Coinbase chief legal officer Paul Grewal on Friday takes a pre-emptive strike against the US Securities and Exchange Commission (SEC) amid its legal fight for regulatory clarity over crypto. Grewal cites a court’s precedents confirming that the “Petition Clause” protects the right of individuals and allows them to appeal to courts and forums for legal disputes.

The move comes as a court on Wednesday agreed with Coinbase’s petition and ordered the SEC to respond to Coinbase’s complaint within 10 days.

Coinbase CLO Paul Grewal Forces US SEC to Comply

Crypto exchange Coinbase’s Chief Legal Officer Paul Grewal stated on May 5 that Petition Clause protects the right of individuals to appeal to courts and other forums established by the government for resolution of legal disputes. He cites the court’s precedents in Borough of Duryea v. Guarnieri, 564 U.S. 379 (2011) case urging US SEC Chair Gary Gensler to comply and respond to the complaints.

Coinbase filed a lawsuit against the US SEC after the regulator failed to provide clarity regarding guidelines and rules on crypto trading, listing, and staking. Contrarily, the SEC continued enforcement actions against crypto exchanges and companies without disclosing clear rules related to crypto.

In the lawsuit, Coinbase compel the SEC to reply to its petition submitted in 2022. In the petition, the exchange asked 50 specific questions about the regulatory treatment of digital assets by the SEC, including how it applies securities laws to digital assets.

The US Court of Appeals for the Third Circuit ordered the SEC to respond to Coinbase’s writ of mandamus within 10 days. Coinbase may file a reply to the commission’s response within 7 days of the filing.

Ripple Working With Coinbase Against SEC

Coingape earlier reported that Coinbase and Ripple’s chief legal officers had a meeting offsite. This meeting came in when both players faced legal difficulties from the US SEC.

The crypto industry has taken a collaborative approach to seeking clarity on crypto regulations and how regulators charge crypto companies without clear regulations and laws.

Meanwhile, Coinbase CEO Brian Armstrong after its quarterly earnings that the change remains committed to the U.S. and seeks the support of regulators and the community.