Coinbase Global Inc. COIN on Monday submitted a petition to a federal appeals court, challenging a decision made by the U.S. Securities and Exchange Commission (SEC).
The SEC had rejected Coinbase's appeal for the establishment of new regulations tailored to the digital asset industry.
The announcement on Friday revealed that the five-member commission reached the decision through a close 3-2 vote.
The SEC, led by Chair Gary Gensler, has officially rejected Coinbase's proposal for new rulemaking, countering their argument that existing cryptocurrency regulations are "unworkable," as reported by Reuters.
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After a prolonged period of 18 months without a response, the SEC's refusal prompted Coinbase to take legal action.
The crypto exchange had initially pursued court intervention to elicit a response from the SEC, a step that was recognized by the Third Circuit.
This approach was supported by two dissenting SEC commissioners, who advocated for a cooperative method to formulate laws and regulations beneficial for both consumers and American innovation.
The debate over who holds regulatory jurisdiction in the cryptocurrency sector is further intensified by varying statements from senior officials.
Following Coinbase's 2021 listing, Gensler testified in Congress about the lack of existing regulatory frameworks for cryptocurrency exchanges.
Recently, the CFTC chair asserted that under current law, many tokens are classified as commodities.
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