Coinbase, a cryptocurrency exchange, has filed legal action requesting that the U.S. Securities and Exchange Commission (SEC) provide regulatory clarity for the crypto industry. 

The move is in response to a petition filed by Coinbase in July 2022, urging the SEC to provide formal guidance to the crypto sector. Coinbase alleges that the SEC has yet to respond to its petition, and thus it has resorted to legal action to prompt a response from the SEC.

As per the Administrative Procedure Act, the SEC is obligated to provide a response to its rulemaking petition within a reasonable timeframe. Failure to do so would give Coinbase the right to challenge the decision in court. 

The company clarified that it is not attempting to influence the SEC's response but simply demanding that the agency provides a response.

Despite the lack of clarity from the SEC on the application of laws to the crypto sector, Coinbase, along with other crypto companies, may face regulatory enforcement actions. 

Coinbase has emphasized that the industry is in need of regulatory clarity, and that the establishment of new rules is crucial for informing the public on permissible activities. Coinbase has stated that the absence of clear guidelines creates ambiguity, making it challenging for industry players to comply with regulatory requirements.

According to the company, its legal action against the SEC is aimed at pressuring the agency to create basic rules. Coinbase has further stated that it will utilize all available means to obtain regulatory clarity until the industry achieves that objective.

Chief Legal Officer at Coinbase Paul Grewal expressed the need for clarity in a tweet:

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