The SEC Denies Coinbase’s Request for New Digital Asset Regulation
The Securities and Exchange Commission (SEC) has rejected cryptocurrency exchange Coinbase’s plea for fresh regulations on digital assets, asserting that the existing rules are already applicable. SEC Chair Gary Gensler expressed his support for the decision, explaining that current laws cover the crypto industry adequately.
Gensler stated in a released statement, “Thus, to the extent that crypto assets are offered and sold in the form of an investment contract, and to the extent that entities intermediate transactions in crypto asset securities, the federal securities laws apply.”
‘Noncompliant Crypto Intermediaries’
Gensler further emphasized the importance of engagement with the SEC and compliance with the law. He said, “Meaningful engagement with the SEC is always welcome, and I look forward to working with crypto projects and intermediaries that wish to comply with the law.”
Coinbase had filed a lawsuit against the SEC in April to prompt a response to its 2022 request for rulemaking.
About Author
Sarah is a reporter at The Block specializing in policy, regulation, and legal developments. Her coverage of cryptocurrencies began during her time as a reporter with CQ Legal, where she focused on securities regulation. Sarah has contributed to finance-related publications such as The Bond Buyer and American Banker. She holds a degree in print and digital journalism from the University of Missouri and is currently based in Washington D.C., fueling her work with a passion for coffee. Follow her on Twitter @ForTheWynn.
Hot Take: The SEC Upholds Existing Rules for Cryptocurrencies
The Securities and Exchange Commission’s denial of Coinbase’s request for new digital asset regulation reaffirms their belief that current rules are sufficient for governing the crypto industry. SEC Chair Gary Gensler supports this decision, emphasizing the applicability of federal securities laws to cryptocurrency transactions. He encourages compliance with the law and expresses a willingness to collaborate with crypto projects and intermediaries. Coinbase’s lawsuit against the SEC seeks clarification on their 2022 request for rulemaking. As the regulatory landscape for cryptocurrencies continues to evolve, it remains crucial for industry players to engage with regulatory authorities and ensure compliance.
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