Coinbase has submitted a comprehensive set of proposals to the U.S. Securities and Exchange Commission (SEC), urging the regulator to establish clearer guidelines for the crypto industry.
In a blog post published on March 20, 2025, Coinbase explained that it is urging the SEC to classify digital assets without enterprise rights as “digital commodities,” acknowledge Congress’s authority in defining the regulatory treatment of digital assets, clarify that secondary market trading of digital commodities does not constitute securities trading, and focus on enabling the tokenization of traditional securities. The submission also recommends that industry participants play an active role in shaping the regulatory landscape.
Notably, the proposal was submitted in response to SEC Commissioner Hester Peirce’s request for industry input on a regulatory framework. Peirce, who leads the SEC’s newly established crypto task force, had called for engagement from stakeholders.
This initiative follows a tumultuous period in Coinbase’s relationship with the SEC. In June 2023, the SEC filed a lawsuit against Coinbase, alleging it operated as an unregistered securities exchange and broker. The case sought injunctions, disgorgement of profits, and civil penalties.
However, on February 27, 2025, the regulator officially announced that it is dismissing the case. It stated that the new crypto taskforce’s findings might have significant implications for the case.
Before that, in January 2025, another legal battle between the two entities saw a resolution in Coinbase’s favor. The U.S. Court of Appeals for the Third Circuit ruled that the SEC must provide a more detailed explanation for its refusal to engage in formal rulemaking on digital assets. This ruling followed Coinbase’s July 2022 petition for clearer rules on how federal securities laws apply to digital assets which the rergulator dismissed.
While not a complete victory for Coinbase, the Third Circuit’s decision placed judicial pressure on the SEC to move away from its “regulation-by-enforcement” approach. In a concurring opinion, Judge Bibas raised concerns that enforcing rules without clear, pre-announced guidelines could violate due process.
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