Coinbase (NASDAQ:COIN) stock is a hot topic on Tuesday as the crypto exchange company is suing the U.S. Securities and Exchange Commission (SEC) for an answer to regulations.
According to a blog post from Coinbase, the company has filed a narrow action in federal court to force an answer from the SEC concerning crypto exchange regulation. This follows a petition from Coinbase for updated guidance concerning digital assets.
Coinbase argues that the SEC has to respond to its petition as required by the Administrative Procedure Act. Even if the agency answers no to the request, it would allow the crypto exchange to challenge the decision and seek rulemaking.
Coinbase points out that even without an answer, the SEC has been cracking down on crypto exchanges. This would suggest that the agency has made up its mind about the decision, but hasn’t provided Coinbase with the required public answer.
COIN Stock: Coinbase’s Stance on the Lawsuit
Paul Grewal, Chief Legal Officer at Coinbase, wrote the following in the blog post:
“Regulatory clarity is overdue for our industry. Yet 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. The rulemaking process is a critical step to giving the public notice about what activities they can and cannot engage in. So until the crypto industry gets that clarity, we will continue to take every step available to us to seek it, which includes today’s filing.”
COIN stock is up 1.5% as of Tuesday morning.
There’s more stock market news traders need to know about on Tuesday!
Luckily, we’ve got all of the latest news investors need to know about today. That includes why shares of Nikola (NASDAQ:NKLA), 3M (NYSE:MMM) and In8bio (NASDAQ:INAB) stock are moving today. You can find out more on these matters at the following links!
More Tuesday Stock Market News
- Nikola (NKLA) Stock Pops on Canadian Expansion News
- 3M Layoffs 2023: What to Know About the Latest 3M Job Cuts
- What Is Going on With In8bio (INAB) Stock Today?
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
