June 24, 2024
SEC Rejects Coinbase's Call For Crypto Regulations
Latest Cryptocurrency News

SEC Rejects Coinbase’s Call For Crypto Regulations

The U.S. Securities and Exchange Commission (SEC) recently declined Coinbase’s petition for specific regulations governing digital assets, asserting that the current securities framework adequately oversees crypto asset securities. SEC Chair Gary Gensler emphasized that the existing laws provide sufficient authority for regulating these assets and highlighted the SEC’s active involvement in proposing regulations to directly supervise crypto-related businesses. Gensler underlined the importance of the SEC’s discretion in setting rulemaking priorities.

Coinbase had formally submitted the petition in 2022, predating the SEC’s legal action against the exchange for operating as an unregistered securities platform. Despite Coinbase’s push for tailored rules, the SEC’s meticulous examination led to the conclusion that creating distinct regulations for crypto assets is presently unnecessary.

In a concise two-page response, the five-member commission disagreed with the notion that applying existing securities statutes to crypto asset securities is impractical. While not explicitly referencing Prometheum Inc., Gensler indirectly acknowledged a crypto broker’s utilization of a specialized digital assets registration process, suggesting its potential effectiveness in compliance measures.

Coinbase’s earlier submission of the petition prompted the SEC to thoroughly assess the request, leading to the commission’s denial of the need for bespoke rules specific to crypto assets. The commission’s decision reflects a stance affirming the applicability of current securities statutes in regulating digital asset securities, avoiding the establishment of separate regulatory frameworks for these assets at this time.

SEC Chair Gensler’s remarks highlight the regulatory body’s commitment to leveraging its existing authority to oversee the evolving landscape of digital assets. The denial of Coinbase’s request signifies the SEC’s belief that tailored regulations for crypto assets are not warranted presently, emphasizing reliance on established securities laws and ongoing regulatory efforts to address the challenges posed by the burgeoning crypto industry.

Image by Focal Foto on Flickr

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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