Crypto exchange Coinbase has filed a lawsuit against the Securities and Exchange Commission (SEC).
Coinbase is asking for the commission to create and validate a digital asset-specific rule.
Cathie Wood’s Ark Invest has purchased $8.6 million worth of Coinbase stock.
Coinbase takes legal action against US SEC
Crypto exchange Coinbase has taken legal action against the United States Securities and Exchange Commission.
The move follows Coinbase’s petition to the SEC last summer. The crypto exchange is asking for the securities regulator to provide a definitive answer to its request for the commission to create and validate a digital asset-specific rule.
Coinbase’s chief legal officer Paul Grewal wrote in a blog post on Monday, saying;
“From the SEC’s public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision.”
The crypto exchange can also file another lawsuit to try to force a federal court to make the SEC draft a new rule if the agency denies the request.
The SEC and Coinbase are now embroiled in what could be a long-term legal battle. Last month, the SEC served Coinbase with a Wells Notice, indicating that it is looking into Coinbase’s activities for potentially violating U.S. securities laws.
Coinbase’s CEO revealed last week that the crypto exchange could relocate to another country if the regulatory unclarity in the United States continues.
Ark Invest purchases Coinbase stock
Ark Invest, an American investment management firm run by CEO Cathie Wood, has continued its buying spree of Coinbase’s stock. The ARK Innovation ETF purchased 122,083 shares in Coinbase, the ARK Fintech Innovation ETF, meanwhile, bought 14,633 shares, while the ARK Next Generation Internet ETF added 20,327 shares, totalling $8.6 million.
Cathie Wood’s Ark Invest remains one of the largest Coinbase shareholders despite selling $13.5 million worth of the stocks last month.