Coinbase Plans to Challenge SEC’s Denial of Rulemaking Petition
Coinbase Chief Legal Officer Paul Grewal announced that the cryptocurrency exchange intends to take the SEC to court once again, this time to challenge the Commission’s denial of the company’s rulemaking petition.
SEC Denies Coinbase’s Petition for Crypto Rules Clarification
The U.S. Securities and Exchange Commission has denied a petition by Coinbase to clarify new crypto rules for the digital assets industry. Last year, Coinbase filed a petition asking the SEC to propose and adopt new rules on how to regulate digitally native securities.
Coinbase Takes SEC to Court Over Delayed Response
After waiting for 18 months without receiving a response from the SEC, Coinbase went to court in April to push for an answer. The SEC finally responded with a denial, stating that the existing securities regime appropriately governs crypto asset securities.
Coinbase Plans to Challenge Denial
Coinbase’s Chief Legal Officer, Paul Grewal, announced that the company plans to challenge the SEC’s denial in court. He expressed frustration with the lack of clarity in crypto regulations and emphasized the need for further work in the industry.
SEC and Coinbase Continue Clash Over Crypto Regulation
The SEC and Coinbase have been engaged in continuous disputes over crypto regulation. Coinbase argues that the SEC’s rules are unclear, while the SEC has accused Coinbase of selling unregistered securities and filed a lawsuit against the company.
Focus on Whether Cryptocurrencies Are Securities
The main point of contention between Coinbase and the SEC is whether certain cryptocurrencies should be classified as securities. The SEC’s lawsuit against Coinbase includes allegations that several top coins, including Cardano, Polygon, and Solana, are unregistered securities.
Gensler’s Stance on Digital Coins and Tokens
SEC Chair Gary Gensler has consistently stated that most digital coins and tokens, except for Bitcoin, likely fall into the category of unregistered securities. This means that exchanges allowing their trading could face legal action from the regulator.
Not All SEC Commissioners Agree with Denial
SEC Commissioners Hester Peirce and Mark T. Uyeda expressed disappointment with the Commission’s decision and called for more conversations regarding what constitutes securities. Commissioner Peirce has previously criticized the SEC for being ambiguous and uninterested in facilitating innovation in the financial markets.
Coinbase Seeks Collaboration for Consumer Benefit
Paul Grewal expressed gratitude towards the two Commissioners who disagreed with the denial and called for real dialogue. He emphasized the importance of working together to create laws and rules that benefit consumers and foster US innovation.
Hot Take: Coinbase Challenges SEC’s Denial of Rulemaking Petition
Coinbase is not backing down in its battle with the SEC. The cryptocurrency exchange plans to challenge the SEC’s denial of its rulemaking petition in court. This latest development is part of an ongoing clash between Coinbase and the SEC over crypto regulation. While some SEC Commissioners disagree with the denial, Coinbase remains committed to advocating for clearer regulations that promote innovation and protect consumers.
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