Coinbase Takes Legal Action Against SEC with Mandamus Petition

Coinbase, a digital currency exchange, has filed a mandamus petition in response to the Securities and Exchange Commission’s (SEC) attempts to enforce regulation on the company. Mandamus is a court order used to make a government body comply with certain requests. Coinbase argues that the SEC has been inactive in providing clear guidance on virtual asset regulation and failed to deliver an adequate response to Coinbase’s request. If the writ of mandamus is granted, the SEC will have seven days to respond.

Furthermore, Coinbase is contending that the SEC’s failure to respond efficiently hinders its ability to exercise its rights under the Administrative Procedure Act, which is a federal law regulating US federal agencies’ rulemaking and administrative procedures. In April, Coinbase sued the SEC, seeking regulatory clarity regarding the agency’s issuance of a Wells Notice to the company. The court ordered the SEC to respond to Coinbase but stated that they were not required to take specific actions within a specified time frame.

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