In a new development, Coinbase is pursuing legal action against the American regulatory agency to respond with a yes or no to a petition the company submitted in July of last year. The petition requires the Securities and Exchange Commission (SEC) to clarify the law regulating cryptocurrencies in the American territory.

The action comes after Coinbase CEO Brian Armstrong met with the American regulatory agency last Friday, where he criticized the regulator through his Twitter page, claiming that the American entity should have a clear law that regulates the cryptocurrency market before investigating companies that operate, supposedly, outside the margins of law.

This new legal step taken by the American multinational focuses on forcing the market regulator to take a position on the long-requested petition. After all, if they, as regulators, want to investigate and punish companies that operate outside the margins of law, they must have a clear law that regulates the markets!

The Securities and Exchange Commission, led by Gary Gensler, appointed by American President Joe Biden, has been harshly criticized by both Republican Senators members and those connected to the cryptocurrency industry also by the general crypto public because he has been conducting a kind of "war" with companies that act in the crypto market without a clear market law.

This intransigence of the American agency's chief has already had a victim, Bittrex US, which was forced to leave the American market for having been caught, if we can say, in the investigation conducted by the Securities and Exchange Commission for trading unregistered securities on its platform.

The lawsuit, which aims to force the American agency to define rules for regulating the crypto market responding to Coinbase's petition yes or no, is led by a team that includes Paul Grewal, who is the company's Chief Legal Officer, and an external advisory panel that includes Eugene Scalia. Scalia is known in legal circles for having won several legal cases against government public entities, the most recent being the action against the Financial Stability Oversight Council, which resulted in the revocation of the insurance company MetLife's insurance.

This recent lawsuit is not the only one brought to light by Coinbase against the American government, as another involving the American cryptocurrency giant and the Department of the Treasury has been registered, where the company intends to take legal action alleging transactional involvement with the Tornado Cash mixer, whose founder has been serving a sentence for several months.

It should be noted that if the competent American agency refuses to respond to Coinbase, the American company can proceed with a new lawsuit attempting to involve a federal court to force the agency to respond to the petition.

Therefore, in conclusion, the dance between the American regulatory agency and Coinbase, as well as other industries operating in the sector, is far from over. Coinbase has the right to know whether there is a clear law regulating the market, and the regulatory agency has the right to provide it and thus take actions against those who operate outside the law.

It makes no sense for the regulator to want to carry out investigations and crackdowns on the industry while the same industry does not know when it can engage in Securities trading. The classification of Securities is a complex process, and cryptocurrency entities in the country need the regulator's assistance, not an approach that does not dignify a century-old institution like the SEC.

One other factor that requires the regulator to clarify laws and regulations has to do with the mass migration of crypto industries operating in the territory, which can transfer dominance to and thus, lose the power that this market offers to industry development. The industry needs a crypto hub, and the SEC must create clear regulations, and only then reinforce them.

And what do you think of this legal action taken by Coinbase against the SEC? Will it be beneficial for the industry, or just a way for Coinbase to buy time knowing that it is also being investigated?