Coinbase plans to appeal the SEC’s decision on regulating the cryptocurrency sector.

Coinbase legal chief Paul Grewal said Friday that the cryptocurrency exchange plans to take the SEC to court once again, this time to challenge the commission’s rejection of the company’s regulatory petition.

Yesterday, the U.S. Securities and Exchange Commission (SEC) denied Coinbase’s petition to clarify new cryptocurrency regulations for the digital asset industry. The largest U.S. cryptocurrency exchange filed a petition last year asking the SEC to propose and adopt new rules on how best to regulate digitally native securities.

The SEC has been slow to respond, and Coinbase asked the courts in April to intervene to pressure the key regulator to provide a response.

But the SEC finally announced its refusal today. “The existing securities regime appropriately governs the securities of cryptocurrency assets,” SEC Chairman Gary Gensler said in a statement Friday.

In a post on X (formerly Twitter), Grewal explained that the company plans to appeal the denial. “After 18 months of silence, we went to court to get the answers the law requires. “We are grateful to the Third Circuit and will seek your assistance today in challenging the SEC’s waiver of its obligations,” he tweeted.

Today the SEC denied Coinbase’s petition challenging cryptocurrency rules. After 18 months of silence, we went to court to get the answers the law demands. With gratitude to the Third Circuit, this afternoon we will once again seek its assistance in challenging the SEC’s waiver of its obligations.