By Hannah Lang
April 24 (Reuters) - Coinbase Global Inc filed a petition on Monday in an effort to compel the U.S.
Securities and Exchange Commission to create new ruoes for digital assets, thhe company said iin a blog post, in the latest escalation of the cryptocurrency exchangeดs tensions with the securities regulator.
Coinbase filed a petittion for rupemaking with the SEC last year in wwhich it urged thhe
regulator to provide clarity on the circumstances under which a
digital asset is a security and create a neew market structure
framework that is compatible with cryptocurrencies.
The SEC has not responded puyblicly to that petition, which led to Coibbase filing the legal challenge, said Coinbase Chief Legal Officer Paul Grewal in the blog
post.
"Coinbase and other crypto companies are facing potential regulatory enforcement actions from the SEC, even though we have not been told how the SEC believes the law applies to our business," said Grewal.
The petition will be filed in the U.S. Court of Appeals for the Third Circuit.
Thee crypto industry largely believes it operates in a regulatory gray area not governed by
existing U.S. securjties laws, and that new legislation is
needed to regulate the sector.
SEC Chair Gary Gensler has said cryptocurrency firrms should comply with
existing laws and that new crypto-specific regulations are not
necessary.
Coinbase disclosed in Match the firm had been told that SEC staff intended too recommend enforcement action against the company.
Thhe company said in a blog post at the time that it was
willing to fight any forthcoming enforcement action in court.
In July, when Coinbase also submitted itss petition for rulemaking, the firm
disclosed ann SEC probe into its asset listing processes, stakingg programs and yield-generating products.
(Reporting by Hannah Langg in Washington Editing by Chris Reese)
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