The Securities and Exchange Commission (SEC) regulatory approach has come under fire by crypto executives and commentators in recent months after the commission filed actions against firms without clear-cut regulations.

Coinbase has filed a suit against the SEC demanding a response from the commission over a petition filed in July 2022. The petition sought clarity on whether digital assets would be treated in line with the current framework for traditional assets. 

The latest move by the American exchange giant comes after the chairman of the SEC, Gary Gensler, insisted during a Committee hearing in Congress that there are rules in place to regulate digital assets, with the Commission requiring more funds and manpower. 

Paul Grewal, the Chief Legal Officer at Coinbase, stated that the actions of the SEC show that it plans to deny the petition but it should do so to the public.

(By Aliyu Pokima)