SEC Rejects Coinbase’s Plea for Tailored Crypto Regulations
The Securities and Exchange Commission (SEC) has denied a petition by cryptocurrency exchange Coinbase, rejecting their request for customized regulations for digital assets. In a response, the SEC stated that the requested rulemaking was unwarranted and denied Coinbase’s petition. SEC Chair Gary Gensler emphasized that the regulator already has sufficient authority to govern crypto asset securities and address wrongdoing in the industry.
No Special Treatment for Crypto, Says SEC
This denial is a setback for Coinbase, which had previously petitioned the SEC to develop specialized crypto regulations. The exchange argued that applying traditional securities laws to digital assets would stifle innovation in the sector. However, the SEC disagreed and stated that established securities laws are workable for crypto asset securities. The regulator has been proposing rules to directly regulate crypto market participants and has effectively addressed violations so far.
Industry Frustration Builds as SEC Stonewalls Crypto Regulation
Crypto businesses have grown frustrated with the lack of clear rules tailored to digital asset activities. The SEC’s refusal to accommodate the industry’s regulatory demands further cements perceptions that the watchdog is stonewalling calls for bespoke policy. Advocates argue that an inflexible application of antiquated securities law inhibits advancements and drives activity overseas. They believe updated rules are needed to encourage American crypto companies to grow domestically.
Hot Take: SEC Denies Coinbase Push for Crypto Regulation, Cites Own Priorities
The SEC’s denial of Coinbase’s plea for tailored crypto regulations highlights the regulatory challenges faced by the industry. While Coinbase argued for specialized rules, the SEC maintains that existing securities laws are sufficient. This decision adds to the frustration felt by crypto businesses seeking clarity and regulatory certainty. Without intervention from lawmakers, the industry is likely to continue facing uncertainty. The SEC’s refusal to accommodate the industry’s demands raises questions about the future of crypto regulation in the United States.
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