The SEC Denies Coinbase’s Petition for New Crypto Regulatory Framework
The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase’s request to establish a new regulatory framework for digital assets. In a letter to Coinbase, the SEC stated its disagreement with the exchange’s belief that securities laws should not apply to the crypto industry.
The Commission declared that it finds no justification for the requested rulemaking and denies the petition. It also disagrees with the assertion that existing securities statutes and regulations are unworkable in relation to crypto asset securities and related intermediaries.
SEC Chairman Gary Gensler supported the agency’s decision, stating that current securities laws already provide consumer protection in the crypto markets. However, two SEC commissioners, Hester Peirce and Mark Uyeda, disagree with this stance, arguing that virtual currencies require their own set of regulations.
Hot Take: SEC Rejects Coinbase’s Plea for New Crypto Regulations
The U.S. Securities and Exchange Commission (SEC) has turned down Coinbase’s appeal to establish a fresh regulatory framework for digital assets. The SEC asserts that existing securities laws are sufficient to govern the crypto industry, rejecting Coinbase’s argument that such laws are unworkable. SEC Chairman Gary Gensler supports this decision, emphasizing that investors and issuers in the crypto securities markets deserve protection under current regulations. However, two SEC commissioners disagree, arguing that new technologies like virtual currencies require specialized regulations. The denial of Coinbase’s petition maintains the status quo of applying existing securities statutes and regulations to digital assets.
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