Coinbase Files Appeal to Federal Court for SEC’s Response to Formal Rulemaking Request

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Coinbase (COIN) has petitioned a federal court to order the Securities and Exchange Commission (SEC) to react to a petition it filed last year seeking formal rulemaking in the digital assets sector. On Monday, Coinbase filed an Administrative Procedure Act appeal against the SEC, requesting that the Third Circuit Court of Appeals require the SEC to provide “regulatory clarity” on how existing securities regulations may apply to the digital asset sector—last month, the SEC alerted Coinbase that it planned to sue the exchange over charges of listing and offering unregistered securities products. By the end of April, Coinbase is scheduled to reply to the particular charges. The filing is a proactive step by Coinbase to claim that the SEC’s strategy does not provide adequate regulatory oversight.

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Assembly Bill 1229, backed by Andreessen Horowitz and the Crypto Council for Innovation, establishes a legal framework for Decentralised Autonomous Organisations (DAOs) in California. It would allow DAOs to incorporate in California and pay taxes, while also improving protection for Californians involved in the Web3 economy. A decentralized autonomous organization is one in which control is divided among its members. Despite considerable support in the state legislature, California Governor Gavin Newsom denied a statewide bill that would have provided a legal framework for cryptocurrency regulation. He termed the bill “premature” and said the state needed a “more flexible approach.” Assemblymember Haney stated that if California’s laws were kept up with the times, it would be beneficial for both the economy and the state’s identity.

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