Coinbase lobbied the U.S. Securities and Exchange Commission for clear and transparent regulation of cryptocurrencies on Monday, September 23.
The leading U.S. cryptocurrency exchange and the financial regulator have locked horns in a federal appeals court in Philadelphia, according to a Reuters report.
Coinbase Urges SEC to Create Better Regulatory Environment for Crypto Assets in the US
Last December, Coinbase filed a petition claiming that the regulatory framework for cryptocurrencies was “unworkable,” but the SEC has already denied it.
On September 23, the exchange added that cryptocurrency companies cannot operate in the United States due to unreasonable SEC regulations, according to Reuters reporting.
Coinbase attorney Eugene Scalia told the appeals court that the SEC refused to provide information “on how to register with the agency and comply with U.S. law.”
On the other hand, SEC attorney Ezekiel Hill argued that the regulator should not have to create a new set of rules for Coinbase if the company “wants to organize its business in a manner that is inconsistent with the existing regulatory framework.”
The judges said the SEC takes a cautious approach to rulemaking, but pressed the agency on “why cryptocurrency was not included.”
Last year, the SEC sued Coinbase for failing to register as a broker-dealer while operating in the country. Additionally, the regulator claimed that the exchange’s staking program and more than 10 digital assets available on the platform were securities.
Three weeks later, on June 27, Coinbase sued the SEC and the Federal Deposit Insurance Corporation for refusing to provide information requested under the Freedom of Information Act.
Coinbase and the SEC are clashing over securities allegations in a separate lawsuit.
