Coinbase aims to force the SEC to make a decision on the 2022 petition, which is a prerequisite for the company to challenge certain SEC policies in court.

Coinbase filed the legal action on April 24, demanding that the U.S. Securities and Exchange Commission (SEC) respond to its earlier rulemaking request.

Coinbase Seeks Answers

In July 2022, Coinbase filed a petition asking the SEC to use its rulemaking process to develop guidance for companies in the crypto industry.

The current filing does not force the SEC to comply with the petition. Instead, it forces the SEC to accept or reject the petition if it is successful.

Coinbase said the SEC needs to respond to the petition within a reasonable time. It hinted that the SEC may have decided to deny its request, but said the regulator has not made any public statements on the issue.

The current filing is indirectly related to the Wells Notice that Coinbase received from the SEC in March. The notice indicated that the SEC may soon file charges against Coinbase, and that Coinbase plans to fight the SEC in court if Coinbase decides to move forward.

According to Coinbase, the SEC must issue a statement on the matter in order for the public (or Coinbase itself) to question certain SEC policies. Therefore, Coinbase needs the SEC to respond to its petition, even if the answer is no.

Coinbase meets with SEC, Congress

Coinbase CEO Brian Armstrong said separately on Twitter that he and his staff met with the SEC. He said Coinbase will "continue to push for a clear rulebook."

Armstrong and his staff also met with members of Congress ahead of the appointment to discuss relevant regulatory issues, including overreach by the SEC.

Coinbase is one of many crypto companies that the SEC has recently targeted; others include Kraken, Bittrex and Ripple. Last week, House Republicans criticized SEC Chairman Gary Gensler for his agency’s harsh treatment of the cryptocurrency industry.