Crypto exchange Coinbase is taking legal action against the United States Securities and Exchange Commission (SEC) in an effort to push for the creation of rules for the crypto industry. In a recent court filing, Coinbase argued that the SEC violated the Administrative Procedures Act by denying its petition for crypto regulations without proper justification.

Coinbase Challenges SEC’s Decision

In its filing with the Third Circuit Appeals Court, Coinbase criticized the SEC for failing to provide a clear reason for denying its request for rulemaking in the crypto sector. According to Coinbase, the SEC’s refusal to engage in rulemaking was arbitrary and capricious, especially considering the agency’s aggressive enforcement of securities laws against other crypto companies.

Coinbase is urging the court to review its petition, overturn the SEC’s denial, and compel the agency to initiate the rulemaking process for the crypto industry.

SEC’s Alleged Flip-Flop on Crypto Authority

Coinbase’s legal brief also highlighted what it claims is a shift in the SEC’s stance on crypto regulation. The exchange argued that the SEC previously acknowledged its limited authority over crypto, only to later assert broader powers to regulate the industry.

Coinbase contends that the SEC cannot unilaterally expand its authority without approval from Congress, a point that has been raised in legal motions by other major crypto exchanges like Kraken and Binance.

Coinbase Stands Firm Against SEC

Despite facing a separate lawsuit from the SEC over alleged regulatory violations, Coinbase remains steadfast in its legal battle to challenge the agency’s authority over the crypto market. The exchange’s appeal for rulemaking signals its commitment to ensuring clear and consistent regulations for the industry.

For more updates on the latest developments in the crypto world, stay tuned to Global Crypto News.

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