Coinbase has officially raised legal questions against the Securities and Exchange Commission (SEC) for rejecting its petition for rulemaking starting in 2022. Coinbase's Chief Legal Officer, Paul Grewal, stated on X that "we have now filed with the Third Circuit to challenge the SEC's arbitrary and capricious denial of our petition to establish a crypto rule. We thank the court for its consideration once again." Grewal called this decision "arbitrary and capricious." Coinbase argued in its petition review that the SEC's rejection was "an abuse of discretion, contrary to law, and in violation of the Administrative Procedure Act."