SEC Denies Coinbase’s Request For New Crypto Regulations
The U.S. Securities and Exchange Commission (SEC) has rejected Coinbase’s request for the establishment of new regulations specifically for digital assets, stating that the current regulatory framework is sufficient for the crypto market.
SEC Chair Gary Gensler Backs Decision
SEC Chair Gary Gensler supported the decision, stating that current laws are already applicable to the cryptocurrency sector given the broad definition of a security and the Howey and Reves Supreme Court decisions.
Gensler emphasized that existing laws and regulations are already applicable to the crypto securities markets and that the economic realities of transactions are more important than their form.
SEC Focuses On Registration Compliance
The SEC highlighted the importance of registration and regulatory compliance for intermediaries in the crypto asset market and mentioned its ongoing efforts in rulemaking specific to crypto asset securities.
The SEC’s statement showed the significance of the Commission’s autonomy in determining its rulemaking agenda and that the crypto market constitutes a minor segment of the broader capital markets, directing its attention to sectors that require more immediate regulatory updates.
Hot Take
The decision by the SEC to deny Coinbase’s request for new regulations specific to crypto assets reflects the Commission’s confidence in the existing regulatory framework’s ability to handle the crypto market without impediments.
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