Coinbase challenges SEC’s decision to reject new crypto rules in court

Coinbase Chief Legal Officer Paul Grewal said on Friday that the cryptocurrency exchange is challenging the U.S. Securities and Exchange Commission’s (SEC) decision to deny its request for new digital asset regulatory rules. Earlier in the day, the SEC rejected Coinbase’s long-standing request for new rules, calling it “unnecessary.” “Today the SEC rejected Coinbase’s petition regarding cryptocurrency rules,” Grewal posted on X. "After 18 months of silence, we went to court to get the response required by the law. Thank you to the 3rd Circuit, whose help we will again request later today to challenge the SEC's abdication of its duties." Coinbase and the SEC have been at odds since it requested new rules in 2022. Grewal noted that Republican SEC Commissioners Hester Peirce and Mark Uyeda disagreed with the rejection, noting the need for dialogue between regulators and the crypto industry. "We are grateful to both commissioners for disagreeing with the rejection and calling for real dialogue," Grewal said. “We should work together to create laws and rules that will benefit consumers and American innovation, rather than fighting lawsuits based on legal positions that change every month.” (The Block)