The U.S. Securities and Exchange Commission (SEC) rejected Coinbase Global’s petition for new rules in the digital asset sector. Additionally, this prompted Coinbase, the country’s largest crypto exchange, to announce its intention to challenge the decision in court. The five-member commission voted 3-2; moreover, they asserted that current regulations are not “unworkable” for the crypto sphere, contrary to Coinbase’s claim.
Despite Coinbase’s assertion that the existing laws lack clarity, SEC Chair Gary Gensler emphasized that current regulations adequately apply to the crypto securities markets. In response, Coinbase’s chief legal officer, Paul Grewal, expressed the need for collaboration to create laws benefiting consumers and U.S. innovation.
Grewal’s statement highlighted the industry’s belief in the necessity for a clearer regulatory framework. Coinbase had previously urged the SEC to develop specific rules for the crypto sector, arguing that current U.S. securities laws are insufficient. The SEC’s denial led Coinbase to notify a federal court in Philadelphia of its intent to seek a judicial review.
In 2022, Coinbase had initially requested a tailored set of rules for the crypto sector, leading to an April appeal to a judge to compel the SEC’s response. Despite the court’s decision not to force immediate action, Coinbase continued its pursuit of regulatory clarity.
SEC Commissioner Gensler contended that Coinbase, by seeking rules, acknowledged the SEC’s authority over the crypto sector, a point of disagreement between the two entities. Republican SEC Commissioners Hester Peirce and Mark Uyeda jointly expressed their disagreement with the SEC’s decision.
In this article, 4xPip encourages traders to stay informed about regulatory developments. Visit 4xpip for expert insights and tools to navigate the evolving crypto and stock market landscape. For personalized guidance, reach out to services@4xpipcom.