Coinbase sues SEC, Ark Invest buys $8.6m in Coinbase stock

Key takeaways

• Crypto exchange Coinbase has filed a lawsuit against the Securities and Exchange Commission (SEC).

• Coinbase wants the agency to provide a yes or no to Coinbase’s request for the commission to draft and approve a digital asset-specific rule.

• Cathie Wood’s Ark Invest has purchased $8.6 million worth of Coinbase stock.

Coinbase sues US SEC

Coinbase, one of the leading crypto exchanges in the United States, has filed a lawsuit against the United States Securities and Exchange Commission.

The lawsuit comes after the crypto exchange filed a petition with the SEC last summer. Coinbase wants the securities regulator to provide a yes or no to its request for the commission to draft and approve a digital asset-specific rule.

Coinbase’s chief legal officer Paul Grewal wrote in a blog post on Monday, stating that;

“From the SEC’s public statements and enforcement activity in the crypto industry, it seems like the SEC has already made up its mind to deny our petition. But they haven’t told the public yet. So the action Coinbase filed today simply asks the court to ask the SEC to share its decision.”

The crypto exchange can also file another lawsuit to try to make a federal court force the SEC to make a new rule if the regulatory agency declines.

The SEC and Coinbase are currently in what could become a long legal battle. Last month, the SEC served Coinbase with a Wells Notice, indicating that it is looking into Coinbase’s activities for potentially violating U.S. securities laws.

Coinbase’s CEO revealed last week that the crypto exchange could relocate to another country if the regulatory unclarity in the United States persists. 

Ark Invest loads up on Coinbase stock

Ark Invest, an American investment management firm run by CEO Cathie Wood, continues its buying spree of Coinbase’s stock. The ARK Innovation ETF purchased 122,083 shares in Coinbase, the ARK Fintech Innovation ETF, meanwhile, bought 14,633 shares, while the ARK Next Generation Internet ETF added 20,327 shares, totalling $8.6 million.

Cathie Wood’s Ark Invest remains one of the biggest Coinbase shareholders despite selling $13.5 million worth of the stocks last month.