Coinbase Says SEC’s Denial of Petition for Rulemaking is Arbitrary and Capricious in Court Filing

As expected, Coinbase (NASDAQ:COIN) has filed a response to the Securities and Exchange Commission’s (SEC) decision to deny the Petition for Rulemaking commenced July of 2022 by the crypto exchange.

The SEC issued a statement on the request for rulemaking this past Friday.

Coinbase is requesting a review of the SEC ‘s Order  on the grounds that the decision was “arbitrary and capricious, an abuse of discretion, and contrary to law, in violation of the Administrative Procedure Act.”

The document goes on to describe the SEC’s approach to digital assets as “regulation by enforcement” while claiming the SEC has exceeded its statutory authority.

A separate letter sent to the Commission by a law firm representing Coinbase said the Petition has “now achieved its purpose of compelling the SEC to act on Coinbase’s request for rulemaking.”

Coinase Chief Legal Officer Paul Grewal thanked the two dissenting Commissioners for their call for “real dialogue.”




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